Building ALandmark The 100 West Liberty Building's Reno Connection From left: Frank Gallagher, senior partner, Preston Q. Hale, fOunder, and T.J . Day, senior partner of Preston Q. Hale Co.
IE ADA BRIEFS 14 Beefing up Nevada's Cattle Industry 16 Industry Nevada ranchers have troubles piling up like haystacks -and a hike in New Reno plant producing federal grazingfees may be the last straw. The industry's bright spot may high-density polyethylene pipe. be a television starlet. 16 commerce special supplement Nearly 20 percent of Washoe NEVADA BUSINESS Journal County's new jobs have com e Welcomes The from foreign businesses. 41 Advertising 100 west Liberty Building Reno ad agency nets major Page S-1 national awards. 5-6 Building A Landmark 41 Finance The partnership behind the 100 West Liberty Building has melded the Accounting/consulting firms ideas of many into one stunning Reno landmark. It's a remarkable combine in Las Vegas. achievement and a remarkable building. 5-11 RoOm For Growth 42 Trade Unlike many cities across the U.S., Reno in not threatened by an offic e Nevada continues efforts to space glut. The 100 West Liberty Building is a welcome addition 10 the woo Pacific Rim business. city's skyline. Development 5-12 Putting Stock In Reno 43 Major active adult co mmunity Robert Dant came close to selling his parcel of land on Liberty Street in slated for Las Vegas. Reno. When PrestonQ. Hale convinced him to hold onto it, the 100West Liberty Partnership was born. 5-14 An All-star Uneup The 100 West Liberty Partnership wanted to build quality, so they put together a roster of the finest subcontractors available-many from right here in Reno. 5-16 !4 'Class A' Project All The Way The terraced design of the 100 West Liberty Building is only its most strik ing feature. Top quality materials, both inside and out, project a commit ment to excellence. 48 The Carson Valley: problems In paradise The small communities that dot the picturesque Carson Valley offer a warm, rural atmosphere. But they also offer a rural infrastructure-a big deterrent to new business. S2 Paradise LOst When high-tech Xebec opened shop in rural Gardnerville, most folks were ecstatic. The company trained some 2,000 people and created 500 jobs. It was too good to last.
THE COVER: Frank Gallagher, senior partner of Preston Q . Hale Co. (left), 6 Silver Dome Preston Q. Hale, chairman (center) and 8 small Business Of The Month T.J. Day, senior partner, represent the Reno members of a five-man partner 10 Business Indicators ship that is building the 100 West liber 12 Stack Index ty Building.
THE NEVADA BUSINESS JOURNAUOCtobef 1987 3 Nevada Business....., We've got the - ""' .... _~-- EDITOR IN CHI EF Henry C. Holcomb
PUBLI SHER answers to Myra E. Holcomb ASSOCIATE PU BUSHER Jack Dyer yourdata MANAGING EDITOR Leslie Happ ASSOCIATEEDITO R Donna Maxw ell communications ART DIRECTOR NiCk Oomschot
TYPOGRAPH ER needs. Dartene A.. Oswald CONTRIBUTING EDITORS Bob Belkna p Joe Bickett Sharon Cahill CocoOum Nevada Bell has a full range David Ho fstede JoBlen Dalton Johnson ofanalog and digital data Sieve ZUelke ART ASSOCIATE services to meet your Darl ene A. Oswald
CIRCULATION DIRECTOR communications needs: Barbara Belshaw
ADVERTISING OFFICES Northern Nevada - Advanceddigital technology, Jack Dyer 300B Baker DrIve includingan expanding fiber Carson City, NV 89701 network (702)883-56t 1 Southern Nevada Chuck Dandy - Datatransport ina wide range of 1641 E. Sunset Ad., Suite 8-117 Las Vegas, NV 89119 speeds (2.4 Kbps to 1.544Mbps) (702) 361·1065 Nat ional Representative - Dedicatedand switchedsystems New Vork The National Business Network 600 Third Ave. New Yo rk, NY 10016 For more answers and simple (212)687·7272 Los An geles solutions today, call your Nevada Bell Nat ional Business Netw orlo; 5705 canterb ury Drive Office at 811. Culver City, CA 90:230 (213) 21&0063
For add itional information reference Standard Rates and Data NEVADAt:tBELL,. '2OA·Business-Metro. State and Regiona l.
NEVAO'. EUSlNESS .JourTW is ~ ~ 1Il APacific Telesis Company W;1 E.s.- Ad.. SuiIe & 111, L.. VllQ&S. NY 89119. ~.- $Z1oo pw~.1UtlnMter. SlncllIlI- _ ~ lei NEVAQ,o, IlUSINESSJcunlIl, 1&11 E. s.- RcL SuiIe&111, L.. v~ NV89119.
must be secured 55 percent by a mo rt gage on a project. Grose says the loan corporation was set up by the National Association of State Development Agencies and is the most significant step taken by the na tional grou p. " While many have bemoaned the re The strictions on industrial development bonds and their probable demise, NASDA went out and did something about it. I believe Nevada has greater capital needs than most states, and this new source is most welcome," Grose Silver says. Gov. Richard Bryan says the loan program is " an excellent exam ple of a cooperative effort by state development agencies and the private sector to devel Dome op a new sou rce of business financing for the purpose of business growth and expansion."
Insurance tives say it doesn' t appear feasible to in California Lottery's sure the operators of the vehicles instead Companies Shun of thier cars . Impact On Nevada New Coverage Tom Rohner of the California State Gaming Minimal Auto mob ile Association says his com tate Insurance Commissioner pany opposed the concept partly be There were some early concerns about David Gates says a new law let cause the insurance industry isn't set up the impact of the California lottery on tingpeoplegetauto insurance for to provide "people" coverage instead of Nevada's hotel-casinos and related tour Sthemselves instead of their vehi auto coverage. ism-based industries, but industry repre cles-to help cut costs for people with Gates says he is continuing to work sentatives say the novelty of the lottery several vehicles-hasn't done much with the insurance companies to con has worn off a bit, and tourists from good for the consumer yet. vince them to cover people instead of California are spending more and more Gates says the new law passed by the their autos. " I can't force them to pro money in Nevada. 1987 Legislature doesn't require insur vide the coverage. But we're trying to That comment is based upon state ance companies to sell the new type of bring some public pressure to bear on Gaming Board figures for the past fiscal coverage and none of the companies them to change their minds ," he says. year which show that Nevada's casinos have gone out of their way to offer it. too k in a record $3.71 billion from Gates also says he has warned the insur gamblers over the year for a 10.2 percent ers that if they do n't start providing the New Loans May increase over the prior fiscal year. coverageon their own, the 1989 Legisla The gain in taxable gross revenues ture may come up with a law mandating Help Fund before operating expenses and taxes are the coverage. Nevada Development ta ken out-is mo re than double the 4.3 But assemblyman Len Nevin, percent increase in fiscal 1986. D-Sparks, chairman of the Transports State Economic Development Direc The percentage gain is skewed some tion Committee that introduced the pro tor Andrew Grose says Nevada should what because of winter storms and posal , sayslawmakers purposelyleft out benefit from a new $100 million fund flooding tha t held the 1986 figures a mandate for the insurancecoverage in for loans of $700,OCO and up to projects down, especially for northern Nevada passing the law, apparently the only one that help create new jobs and finance clubs. But Control Board spo kesman of its sort in the nation. " II's ju st one small business growth. Har lan Elges says that even with that more option we ma de available to the American Development Finance Inc. factor the latest figures show "some real public, and I think if enough people ask was set up to make the loans through positive increases in the economy." for it the insurance companies will be state economic development commis Jerry Higgins of the Gaming Industry forced to provide it because of de sions around the country. Grose says the Association of Nevada says the overall mand," Nevin says. loans sho uld be at a rate close to the strong gains show that the California He adds that the mandate was left ou t prime interest rate for New York banks. lottery isn't the threat that some in because "that 's the only way we could Loans from the enterprise capital dustry watchers had feared. get the insurance companies' support." fund can run for up to 20 years, will re "Our people aren't talking about lot Some insurance compa ny representa- quire participation by a local bank and (Continued on page 44)
6 THE NEVADA BUSINESS JOURNAUOctober 1987 Executive Homes A Portfolio of Prestigious Living Styles For The Discerning Home Buyer
For the executive andfamily looking f or something more image-enhancing than just a nice house, Nevada has many impressive dwellings to choose from-both new and previously owned. Homes that reflect the modern lifestyle of today's more affluent and sophisticated Nevada executive. NE VA DA BUSINESS Journal presents here a ph otographic portfolio of such homes. Please contact the Realtor direct,
FOR ADVERTISING INFORMATION CAl.L. ,..'EVADA BUS!l\'ESS JOW7IQ/ 361-1065
u.i1~ &aresis.~ilur hour..curt: ~...;mam ,VJhm-:r you ..'WIt a vaca.n ~ or . fi,.~~ murntYtmni5 <:ourD and • dub Thisqualityheme in Q.Wl W ~. Real log ~ can meet the moIll discrimir'IIIin Q no..-. tmtes.. Ourcz;h cacaIog shawl 0'Jl!l" JO ~ modds. or _ can hdp ~ ~ I i:ur car~. i:ur ~ thrert-hs. pcdIlIpI ycu dl:si&n your "",n Ral log Iiomt. c.u today kJr an ~ to lind ~~ AsIcine: Pritt: 5043O;X(1. ..wit our rrodd and di!CU5& your buildma nee», or lImd S6.OO br our color or ~ to: Contact Marilyn Squitieri Sierra Log Homes ('..ddo..'eIl BarOO-r Rnlton P.O. Fox 2C63. [)erx. l\'BA [702) 731.3881 m REAL~ Cmoo City, NY89702 1702) 458-6987 u::I LOG HOMES® (702) 24&0590 ...... ,..
THE NEVADA BUSINESS JOUANAUOetober 1987 7 perature distribution wi thin boiler and Succeeding furnace units. "We're right at the point where the technology has been proven:' says With Sound Larry Yori, vice president of operations and engineering. " We've got a number Technology of field installations. We know it works . John Kleppe had hit success with acoustic technology over We're developing the technology intO a a decade ago, and he was confident he and partner Larry Yori full-blown product line that we' re going to market right out of Spar ks." could repeat. Their new product may be worth millions. "We'll probably double the size of ======By Bob Gabrielli ======the company within the next few UNR News Bureau months:' saysJohn Kleppe, SEI found er and president. (Editors Note: The Nevada Smal/ Business Development Center has SEI is a sweet success story, a story initiated Q "Small Business of the Monm '' to give recognition to the that actually begins in 1968when Kleppe important role 0/sma/J business in Nevada's economy. This month's winner opened a small fum called Scientific waS" nominated by the slaff ofNSBIX's University ofNevada-Las Vegas office.) Engineering Systems. In 1974, Kleppe, who is a professor of electrical engineer magine having a revolutionary new $2.S billion . No need to imagine any ing and computer science at the Univer product unheard of throughout fwther: the small company in such a sity of Nevada-Reno, received a contract most of the world. Picture this pro catbird scat is the Sparks-based Scien to do some air quality work. He hired a Iduet as having applications for in tific Engineering Instruments (SEO. few atmospheric people and soon came creasing the efficiency of power gener The revolutionary product in question up with an impressive prod uct. ation plants, paper production and a is called Pyrosonics, a cabinet-sized " We developed. the first acoustic ra host of other industrial processes. Now piece of equipment that utilizes acoustics dar-an instrument that sent sound imagine a potential mar ket in excess of to measure high temperature and tern- waves up to the atmosphere that scatter-
John Kleppe, left, and Larry Yori, the braintrust of scien Pyrosontc 2000 in their Sparks laboratory. The product's tific Engineering Instruments, examine a component of potential market may be worth $2.5 bil lion.
8 THE NEVADA BUSINESS JOURNAlJOctobet 1987 ""'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' SMAll BUSINESS OF THE MONTH ""''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
ed off temperature inversions," says curately measuring the gas temperature tempe rature flow and the smoothness of Kleppe. "From the printout, we could and adjusting the fuel and air flow into the running of the plant. The result: a 25 tell how high the inversion was, how in the furnace results in a more efficiently percent increase in recoverable material tense it was and which way the winds buming boiler and an increase in the life using the same equipment. were blowing." expectancy of the operating equipment. Getting maximum efficiency and ex Kleppe's Echosonde was a market Up until now, the process to measure tending the life of the boilers are irresis successand attracted a lot ofattention in high gas temperatures was labor inten table selling points. Babcock & Wilcox the industry. In 1979, it attracted a cor sive. Water-cooled thermocouple probes will market and distribute Pyrosonic porate suitor, Radion Corp. The Texas were manually inserted into the operat systems in the United States and Can based company bought out the Echo ing boiler. The chore was time consum ada.Unlike with Echosonde, however, sonde technology and the company, at ing, and because of constantly changing SEI will retain the exclusive manufactur which point Kleppe went back to the variables, the measurements were never ing rights and keep its niche in American drawing board. He founded Scientific very exact. Kleppe and Yori decided to industry. Engineering Instruments in May of 1979 apply acoustics to the problem . "That's the business of the '80s and and , together with Larry Yori, began " Why can't we open an observation '90s," says Kleppe. "Many of the major working on other marketable produ cts door, shoot a sound wave through the American industrial companies have be using acoustics. They were confident bwning gas and measure the time it takes come inefficient in their ability to inno that they had the right technology at the to travel through a boiler?" asked Kleppe. vate but they have money, momentum, right time. And they also shared a "We know that the time it takes for SOWld marketing expertise, a distribution sys similar philosophy . to travelis proportional to the temperature tem-all the things the little guy doesn 't " The American edge, in my opinion, of the gas inside, if you know something have. So they don't have to buy you; is in innovative, specialized industrial about the gas composition." you do deals. We have a comprehensive electronics that is high cost and low in With the assistance of Babcock & arrangement with Babcock & Wilcox. volume and in which production labor Wilcox, a large boiler manufacturing We have a comprehensive arrangement costs are not a critical factor," says company in Barberton, Ohio, SEI put with a division of Rockwell. You go to Kleppe. "If the lahar cost is not a fac together a prototype Pyrosonic system. the biggest and the best in the business tor, then the Japanese and other off The first field test of the new technology and you go straight on." shore manufacturers don't have any took place at the Valmy Power Plant in SEI is poised to do just that. 0 competitive edge." northern Nevada. One of the small From 1979 to 1985 the company went boilers-equivalent to a 15·story build on a research binge, working on a wide ing-was selected for the test. The The Nevada Small Business Develop range oftechnologies. While the breadth sound waves traveled unscathed through ment Center is a business development of the research was impressive, the pair temperatures ranging up (0 3,(XX) de program funded through a cooperative came to the realization that they had ig grees. Kleppe and Yori developed com agreement between the University of nored a basic fundamental, namely, the puter software to take temperature mea Nevada-Reno and the U.S. Small Busi development half of R&D. surements on a number of paths within ness Administration. It is designed to "We were research and developing a furnace and actually display and print provide all types of management assis for technology's sake rather than being the temperature distributions. tance f ree ofcharge to businesses state market driven," says Kleppe. "That was Pyrosonics proved its worth during wide through offices at UNR and a big mistake ." . field testing at a Georgia-Pacific Co . UNL V campuses and at the Northern "At one point , we were 90 minutes paper and pulp plant. Engineers spent a Nevada Community College in Elko. In away from calling it quits," Yori says. couple of weeks adjusting the air flow addition, the NSBDC cooperates with a " We had no money, no orders, no re into their boiler based on Pyrosonic variety ofagencies and organizations to ceivables. It was pretty grim." measurements to see if there has been a provide services to Nevada's rural com The mission these past two yean; has correlation in terms of a smooth, high munities. been to fOOJS their efforts. They focused only on developingleading-edge industrial electronic equipment which had substan tial market potential. Pyrosonic systems !J'~~,9U (PALl evolved naturally from these efforts. Pyrosonics enables plant operating ~!!!!!~!!!!!!!!!!!!!!!!!!!!" CompIete SecretariaI Service personnel to gauge more accurately and efficiently the temperatures within vari ous regions ofoperating boilers and fur • Corporate Packages • Resident Agent naces. By knowing critical temperatures, • Word Processing and • Notary Publi c operators can identify and eliminate any Typing [All pha ses) • Temporary Services ' temperature peaks or cold spots within • Tape Transcription Employment the unit. •Resumes • Mail Service Temperature peaks tend to create a char that will plug superheater tubes, 311 5 . Roop 5 1., Ca rlon City, NY 89701 and cold spots lead to inefficient com bustion and contribute to pollution. Ac- 1!o ;;;;;;;(7021 115·1646_IHourl) 8:00 - 5:00 0!1
THE NEVADA BUSINESS JOURNAUOclober 1987 9
" ;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;:::::::: BUSINESS INDICATORS;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::;::::::::
UNEMPLOYMENT TRENOS UNEMPLOYMENT RATES BY COUNTY (SEASONALLY ADJUSTED) 72 1987 1986 2nd Qtr. 2nd Qtr. Average Average CARSON CITY ec 5 7 CHURCHILL ss CLARK e••a 7o DOUGlAS 5.7 ao ELKO ae ESMERALDA •za• EUREKA as ..4e HUMBOLDT 7.1 LANDER ••so 9.1 LINCOlN 7.4 .. ' \'ON .. a. MINERAL as sa AS O ND JF MAM JJ NYE aa .7 PERSHING aa aa D U.S. NEVADA STOREY ., 5.3 WASHOE ea WHITE PINE 7.1 .. zs
NEVAOA BUSIN ESS INOICATORS NEVAOA'S RANK AMONC 13 WESTERN STATES
I".%:'...:.::n- .., Average Average "- Wee~dy Y."", (ll[NERAI. BU$l NUS - - - Wages' Wages" ACTlvm - - = _._poo -- ,n U.S. $ 378.80 S 19,700.00 eo--1'rQo_. •• ALASKA 547.22 28,500.00 -~ , ~, lUSCoy "'1 m, ._- -... CALIFORN IA 420.81 21,900.00 ' " EMP\.OYMOIl " _ ~ I'
10 THE NEVADA BUSINESS JOURNAllOctober 1987 at goodisa productorservice ifyoudon'tknow
now to use it?;...... At a time when some tele .... communications compa nies are selling just products and services, AT&T AT&Tcomesthrough olfers with row networking solutions. more:the expertise ofour local sales representatives who can help you get the most outof everything we sell. As an example,insteadof selling just800numbers,your localAT&Tsales representative offers telemarketing knowl edgethatcan help you use AT&T 800 Service to bri ng in new business. Insteadofsimplyselli ng Ina nutshell. no other tele For more inf-ormation. longdistance services, your communications company callvour local AT&T localAT&T sales representa can olfer you the range and sales representative at th-e can show vou howour qualityofAT&T products I 800 222·0400. services can helpyou-cmong and services,plusthe From equipment to net- . otherthings- cut downon knowledge needed to use working.from computers travel expenses, reduce themas partofa total net· to communications, imentorylevels, orspeed up working solution. AT&T isthe right choice. order processing. And he can workwith I'OU to adapt ourservices ro fit your changing telecommuni AT&T cations needs. The right choice. C l987AT&T
- Nevada Business Stock Index Hits New High In August
he NEVADA BUSINESS Journal Stock Index posted develops, manu factu res and markets microcomputer-based a substantial gain during the month of August, sur marketing and information systems for the gaming industry. passing its old record high of 1748.85 set last June. Its principal produ ct lines are its Slot Management Systems and T In keeping pace with the national indices, the its Keno System. The price of the shares was not known at the NEVADA BUSINESSJournal Stock Index bounced back time of this report. after its first loss of 1987 last July as stocks of local interest HD H Industries announced it has agreed to acquire Las witnessed an increase in buying from institutional and indivi d Vegas Resort Investments in exchange for $250 million in ual investors alike last momh. shares of its common stock. Las Vegas Resort Investments is For the month of August, the NE VA DA BUSINESS Jour engaged in the business ofacquiring, developing and managing nal Stock Index leaped to 1837.62, up 97.57 points for the resort properties in the Las Vegas region. Sl-day trading period . Each stock in our portfolio enjoyed an Major Video Corp. has been added to out list of local corn-pan average gain of 5.60 percent vis-a-vis the Dow Jones Industrial ies. It is traded on NASDAQ ....ith the ticker symbol of MAJV. Average which increasedonly 3.53 percent for the same period. This brings the portfolio count to 31 Nevada firms. Separately, Gainers outpacedlosers bya 14 to 13 count while newsz-week Major Video and Magnason ic Canada announced a joint ven highs outnumbered new 52-week lows seven to two . ture for the purpose of owning and operating Major Video retail Electronic Data Technologies, a wholly owned subsidiary of stores and developing a franchising program in Canada.In International Game Technology, an nounced a proposed public vestors were pleased with the ann ouncement as Major Video stock offering last month . Electronic Data Technologies gained $1.25, or 16.67 percent, to d ose at $8.75 a share. 0 NEVADA BUSINESS JOURNAL STO CK INDEX 2800
2600 CLOSING INDEX QUOTES FOR BAR CHART 2400 • DATE NEVADA DOW JONES 3/30 1614.59 2304.69 4/ 30 1652.54 2286.36 2200 5/29 16n..54 2291.57 6/30 1748.85 2418.53 7/ 31 1740.11 2572.07 2lXlO 8/3 1 1837.62 2662.95
1800 • MA RKET DIARY: Advances ••. ..•.. .• ...... • .. . .• ...... 14 Declines 13 1600 Unchanged .. . • •. . •. ••. ••.• •.. • . . •. . • • • •. 3 New Highs...... 8 NN Lows 2 1400 MOST ACTIVEISSUES: Largest $ Gainer .••.• •Showboat Inc $2.88 1200 Largest 5 loser . lnt'I Gaming Technology.·$1.00
Largest 'I/o Gainer.• . Vanderbilt Gold ... 33.33ll'0 1lXlO Largest "I. Loser.Vita Plus Ind.• Xebec.43.18 07. W~ R~ _~ g ~ M ~ ~~
MONTHS NET PERCENT CHANGE CHANGE CLOSE CLOSE IN IN LEGEND 7/31/87 &'31187 PERIOD PERIOD /v.EVA DA BUS/NESS Journal Stoc k 1nde:.: 17JO.1I 1837.62 97.51 Dow Jones Industrial Average 2572.07 2662.95 90.88 '3.53H' Ii!! NE VADA S.Y.5.E. Composite 178.64 1 ~ .4 5 5.81 3.25 Standard & Poor's soo.Stock Index 318.66 329.80 11.14 3.'" D OOWJONES NASD AQ OTC Composite 4304.93 454.97 2M' 4.61
12 THE NEVADA BUSINESS JOURNAUOCtober 1987 STOCK INDEX Nevada Business Stack Index NET PERCENT CLOSING CLOSING CHANGE CHANGE ANNUAL TICKER PRICE PRICE IN 'N P'E DIVIDEND 52 WEE K EXCH COMPANY SYM BOL 7131/87 8/31/87 PERIOD PERIOD RATIO RATE YI ELD HIGH LOW OTC Ca dema Co rp. CD:\.IA 2.31 1.88 -.43 -18.61 4.31 1.63 NYS Circus Circus I H ) CJ R 31.25 31.38 . Il .42 22 33.50 14.00 ASE Elsino re Corp. (H) ELS 2.50 3.00 .5O 20.00 d 3.75 2.25 OTC Firsl Western Financial (H) FWES 8.38 10.50 2. 12 25.30 9 .28 2.67 11.38 8.25 OT C Frontier Savings Assn. FRNT 3.25 3.25 0.00 0.00 4.00 3.00 OTC Gaming & Technology GAT I 6.00 6.25 .25 4.11 J2 8.88 1.44 NYS Golden Nugget GNG 12.50 12.2 5 -. 25 -2.00 3 13.88 9.13 OTC H ytek Micrcsystems HTE K 3.00 2.75 -. 25 -8.33 d 6.00 2.25 OTC Inr'I Game T echnology I G A ~1 12.50 11.50 -1.00 -8.00 14 15.75 9.38 OTC Jackpo t En terprises i H) JACK 11.00 I U O .5O 4.55 16 ." 1.74 11.88 5.88 OTC linear Instruments Ll NR 1.13 1.13 0.00 0.00 1.75 .75 OTC Ma jo r Video Corp. ( H) ~tA JV 7.50 8.75 1.25 16.67 11.75 3.25 OT C Marco r Development MAAR 2.50 2.75 .25 10.00 3.13 1.00 OT C Migent So ftwar e MG NTF 5.88 5.3 1 -.57 -9.69 6. 75 3.75 O TC Munson Geothermal MG EOE 2.50 2.88 .38 15.20 3.75 1.13 O TC Neva da Nat. Ba ncorp. NE NB 6.50 6.63 .Il 2.00 d 9.25 5.25 NY' Nevada Po wer NVP 19.25 20.00 .75 3.9Q II 1,48 7.40 24.63 17.25 OTC P ho ne-A-Gr a m P HOG 3.00 2.88 -. 12 ... .00 d 5.25 2.00 OTC Sahara Reso rts SH RE 12.38 12.88 .50 4.04 143 14.25 5.50 OTC Sands Regent (H) SN DS 10.75 12.88 2.13 19.8 1 Il 13.25 7.75 N YS Showboat Inc. I H ) SBO 13.50 16.38 2.88 21.33 d .28 1.71 16.75 9.00 ASE Sierra Health Servo SI E 4.00 3.88 -. 12 -3.00 d 5.38 3.38 NYS Sierra Pacific Resources SRP 24.00 23.50 -.50 -2.08 12 1.76 7.49 27.75 21.00 NYS Southwest Gas SWX 24.88 24. 50 -.3 8 - 1.53 12 1.28 5.22 26.75 17.50 OTC Sun State S & L SSS L 10.00 9.13 -.87 -8.70 7 11.50 7.00 OTC Sunworld Int'l Airways SU NA 1.50 1.88 .38 25.33 4.13 1.38 OTC Un ited Mining U Ml N .63 .44 -. 19 -30. 16 .88 .06 OT C Vacation Spa Resorts VSP A .06 .06 0.00 0.00 .22 .06 OTC Vanderbilt Gold (H) VAGO 6.00 8.00 2.00 33.33 8.63 3.50 OTC Vita P lus Indu str ies (Ll VP Il .88 .50 -. 38 -43.18 d 2.38 .50 OTC Xebec (l) XE BC .88 .50 -.38 -43.18 d 2.88 .50
KEY: lHl - :-;.~. H i l ~ in P.riod; tll- :-;<~ l o.. in P...iod: d _ Den.i" :' 'TI",E NEVADA BUSINESS JOUANAUOCtober 1987 13 Beefing Up Nevada'S Cattle Industry Nevada ranchers have troubles piling up like haystacks and a hike in federal grazing fees may be the last straw. The industry's bright spot may be a television starlet. """"""""""""""""""""""""""""""""""""""" By David Hofstede """""""""""""""""""""""""""""""""""""" sleek sports car maneuvers off hard times. They might like to do an executive order issued in December smoothly round the curves of some restocking, but they're not in a fi of last year, which sets the grazing fee at a country road, coming to a nancial position to do so." $1.3S (per AUM], " says Goicoechea, A halt in front of a Western-style Goicoechea would like to see prices " but there are several bills before Con restaurant. A beautiful blonde emerges stabilize at their present level, but the gress designed to raise the fee as high as from the car and enters the restaurant, outlook isn't promising. Panaca rancher $7 or $8, which would raise ranchers' turning the head of every customer in Kenny Lee reports the " fat cattle have expensesover 400 percent. Most are just the place. She sits down and is immedi already slipped some five to six cents a barely hanging on now. [If the increase ately served, to her obvious delight, a pound, and that will. reflect back on passes) you'd see a substantial number savory steak dinner. The woman is other [types] ." of people going out of business." Cybill Shepherd. The scenario is from a As if the rancher didn't have enough Not all the news is bad. Feed prices commercial currently airing across the financial woes. another is perched on have come down, and hay prices have country, presented by the Beef Promo either stabilized or dropped. Kelly tion and Research Board. The question Buchner, president of the Nevada Live is, how will this help Nevada's ranchers? Will Cybill stock Production Credit Association The answer isn' t in yet, but there isno (the major fann lender in the state) be doubt that ranchers are in definite need Shepherd devouring a lievesthe improved cattle prices ....ill help of assistance. " Although cattle prices the majority of operators, "if they're have risen $10 to $12 per hundred T-bone on television still in reasonable financial shape." weight, cattle supplies are dwind ling. However, after several years of with According to Cannen Goicoechea. help the ranchers of standing a wildly fluctuating market, former executive secretary of the Nevada? And ifso, some segments of the ranching popula Nevada Cattleman's Association, tion-as much as 25 percent Buchner "Right now the lowest number of cattle to what extent? says- are already too far gone. are on feed in a number of years." " They're just too debt-ridden, and the Figurescompiled by the Nevada Agri price increase is too little, too late." cultural Statistics Service put the exact the horizon, waiting for a government So the question remains: will Cybill number at 5S0,(O), down 10 percent go-ahead to strike. Eighty-five percent Shepherd devouring a Tcbcne on televi from last year. The amount of money of Nevada's lands are owned by the gov sion help Nevada ranchers? And if so, generated by ranching into the state ernment, and are managed through the to what extent, considering the mag economy is also down slightly. The National Forest Service or the Bureau of nitude of their problems? number of people employed in ranching Land Management. Ranchers must pay On the surface it seems an inadequate has diminished as well, as many full to use this land, in a system by which solution. But commercials. along ....-ith time ranchers tum to other activities to "animal unit months" (AUMs) are al corresponding newspaper and radio supplement their income. loted to each rancher based on the campaigns, and in conjunction with Despite the recent surge in prices, amount of his personally owned land other programs designed by the Beef Goicoechea expectsthe downward trend (usually adjacent to government land) Promotion and Research Board, may to continue. " With the market up every and taking into consideration the indeed offset one of the strongest con rancher wants to have something to amount of grazing the land can support. tributing factors to all of the industry's seU," she says." but many are coming " Right now, we're operating under diff1CUlties-a decreased demand for 14 THE NEVADA BUSINESS JOURNAL'October 1967 beef products in the consumer market non that used to handle the promotional and a program has been set up " to get place. chores. The remaining quarter stays in the word back to producers" on the " I think we'll still be able to sell all Nevada, for educational and promo board's progress. our beef in the United States," says tional programs here. So far, the word is positive. Studies Kenny Lee, "but not at the price we'd Wh y are 75 percent of funds collected were conducted in January and again in like. The red meat industry has been here sent to national instead of to stat e June, and the difference in results is en given a black eye, and I thin k the adver organizations? " The majority of Nevada couraging. the num ber of Americans tising campaign will help." is already agriculturally oriented," says who believe beef fits into their lifestyle Lee has a right to expect results, since Conneley. "We're more acquainted increased from 59 percent to 64 percent. he is helping to fund the program . For with beef products, even in the urban The number of Americans who believe every animal sold or owned in the state areas through their use in hote ls." beef is important to a well-balanced diet of Nevada, a $1 "checkoff' fee is col The national board is composed of increased from 51 to 56 percent. Thir lected every sales time. The money is 113 members, including representatives teen percent of those surveyed have in collected. by the Nevada Beef Council. from each state .....i th over 500,(0) head creased the amount of beef in their diet, Prior to this new program, the five of cattle. Nevada Beef Council Chair as opposed to only 8 percent six months member council used to administer the man Martin Morris is Nevada's lone earlier. funds received from a tax assessment fee representative. The number of people eating less beef of 50 cents per head per year. The board's primary goal, according decreased from 25 to 20 percent over the Janice Conneley, the Nevada repre to Janice Conneley, is to "increase the same period . " It will tak e a year or two sentative of the Cat tleman's Beef and demand for beef products among con- to see the real effects," says Conneley, Promotion Board, believes this is a bet " but it' s a Step in the right direction." ter system. "[The ownership rule] means Nati onwide, Ccnneley is confident that even if a cow is marketed out of Although cattle the referendum will pass. She isn't as state (which Nevada cattle frequently certain about in Nevada, though she is are) the checkoff fee is still collected . prices have risen predicting a marginal victory. " The Also, imported beef is taxed in the same ranchers are pretty conservative, and we method, as is dairy cattle. This was a $10 to $12 per had some problems with the Cybill pro blem in the past," she says. hundredweight, Shephe rd comm ercial here," she ad Indeed, previous programs like this mits." They didn 't understand that one were voted down by Nevada's cattle supplies we're not trying to sell the product to ranc hers. This time, they're not taking cattlemen. The market the ad was aimed any chances. "The program has been are d windling. at is 22- to 54-year-old women who are implemented 18 mo nths before a vote educated and in a double-income fami can be taken, 50 we have a chance to ly. After it was explained tha t this was prove ourselves," says Conneley. The sumers, which will sho w producers that the market we were selling to , and tha t vote is scheduled for Ma y of 1988. the program is work ing." For this rea she could reach that market, they were Because the program status must be son, promotion is currently being stress happy." A second spot featuring Jam es considered tentative until the referen ed over research . Garner was better received. dum, "everything we do must be However, scientific study is not being If the referendum is successful, Con thought out, in order to get tha t ' yes' ignored ." Research has been going on neley expects the board to expand its vote. So right now we' re spending a for the last 20 years," says Conneley. target audience, building on the " Real large percentage of the fun ds on promo " We have some marvelous facts about food for real people" campaign. tion, to see the most benefits the quick. beef products that we' ve never had the So far , Cannen Goicoechea reports est," Conneley says. dol1ars to promot e, particularly in the that reactions from Nevada ranc hers re The program itself is based on one in areas of cholesterol and iron." main "mixed," though most are aware itiated by the dairy industry in 1983. So In addition to its consumer advertis of the "need to do a better job ofselling far . that program has increased sales of ing, the board has allocated fun ds for our product." Goicoechea thinks this dairy products over 10 percent nation in-store, point-of-purchase promotions program is on the right track. " Instead wide. On the national level, $8.9 million and merchandising aimed toward the of just advertising claims, they' re offer worth of promotion programs .....as ap food service industry (ho tels, schools). ing infonnation backed by substantial proved by the beef industry for the nine The board has also prepared infonna research with the American Cancer So months beginning next October 1. Pre uve booklets and programs for pedia ciety and the American Heart Associ viously, $9.2 million was authorized, tricians and dieticians on the benefits of ation. This should bring about a more bringing the total allocated thus far to beef produ cts. Sports and physical fit favorable impr ession of beef products." over $18 million. ness health programs are underway, and And if the demand increases, the sup Fifty cents of every dollar collected in will eventually tie in with promotional ply of cattle will almost certainly follow Nevada is sent to the Beef Promotion videos featuring baseball pitcher Nolan suit. It won ' t happen overnight, but and Research Board to help finance the Ryan and other popular athletes. after years of economic uncertainty Ne program. Of the 50 cents that remains, A consumer hot line has been set up to vada's ranchers ar e certainly used to get 25 cents is sent to the Beef Industry provide nutritional and other infor ting by one day at a time. Now if only Council, a subsidiary of the National mation, the "National Beef Cook-offs" Cybill could do something about those Livestock and Beef Board, the organiza- have brought mo re favorable publicity, AUMs... 0 THE NEVADABUSINESS JOURNAUOCtot>er 1987 15 Nevada Briefs cal year report of activities issued in July Reno Pipe Plant by the Economic Development Author ity of Western Ne....ada (EDAWN). AntiCipates Growth Kenneth Lynn , EDAWN executive The new Spirolite Corp. plastic pipe directo r, says five new foreign business plant in suburban Reno ....ill play a key es-two fro m Japan, two from Canada, role in maintaining the integrity of and one from Europe-accounted for underground sewer systems throughout nearly 20 percent of the new jobs the Western United States, says Chevron through economic diversification efforts Chemical Co. President Bob Davis. for the first time since 1984 when Spirolite Corp., headquartered in Porsche Cars North America and Salo Norcross, Ga. , is a subsidiary of Chev moe-North America both entered the ron Chemical Co. It is exclusive U.S. Washoe County business commu nity. licensee to make and sell the high-dens " We're ....ery pleased that our efforts ity polyethylene (HDP E) pipe, .....hich in broadening the economic diversif ica was invented by the West German fum tion base have reached into other coun of Bauku GmbH. tries, in particular the Pacific Rim coun Last January's completion of the tries," L}TIn says. multimillion-dollar facility, encompass L}TIn adds that two other high points ing 75,OOlsquare feet in the Nonh Reno were reached in flSC3.l1987 (ending June Business Center, " represents the poten 30) when a record number of new jobs tial doubling of Spirolite's annual sales were created through EDA\\ 'N-related of large-diameter polyethylene pipe for activities, and that more than .so percent underground sewers," Davis said during Reno's Splrolite Corp. plant pro of the new jobs are already in place. the plant' s dedication ceremonies. duces a polyethylene alternative to " Typically it may take from 18 to 30 The Spirolite plant converts beads of concrete, clay and iron pipe . months from our first contact ....-ith a bus plastic into 13· and ~foo t lengths of iness until the first person is hired for the pipe measuring from 18 inches to 12 feet new facility," L}TIn says. "This past fis in diameter. where the sun's heat tends to accelerate cal year, for the first time ever, 51 percent The plant is currently staffed by 45 the chemical reactions in effluent that of the new jobs are already filled. That' s people. Anticipated growth in demand lead to corrosion." the type of immediate job employment will require as many as 70 employees to Spirolite's properties, on the other impact EDAWN was set up to generate, manufacture the plastic pipe, manholes, hand, are uniquely suited to overcoming along with long-range economic diver pipe fittings, and large-diameter storage leakage and corrosion. Pipes made of sification and development. " tanks in the Spirolite product line. conventional materials don't flex with Lynn says anothe r unusual featu re of Accordi ng to Davis, Chevron selected the movement of the earth, so their fiscal year 1987 was the emergence of the site for its Reno plant only after sur joints are prone to popping open, caus distribution businesses as the leading veying a number of cities to determine ing leaks; Spirolite, however, is flexible employer. The unusually high percent which would be the best strategic loca and designed to bend freely so that age ofdistribution jobs was due primari tion for Spirolite's West Coast distribu joints stay together. Bacteria and chemi ly to the introduction of Sherwin-WiI· tion hub. " Reno had everything we were cals in sewers can corrode thr ough con Iiams, ....-ith 180 new employees, and looking for : an ideal location, friendly ventional iron or concrete pipe; Spiro Home Shopping Network, with up to business climate, and both a strong lite, made of HDP E-commonly used 300 new jobs. work ethic and a high degree of profes to manufacture containers used to store According to Lynn, the upsurge in sionalism among the area workforce," sulfuric acid-is virtually inunune to new businesses is due to positive eco he says. corrosion. Pipes made of concrete or nomic factors. "Last year businesses Other Chevron operations in north clay frequently crack when loads are were unsure what the Tax Refonn Act ern Nevada include the Chevron U.S.A. placed upon them; Spirclite ....ill bend would do, and business people don't Inc. mark eting terminal at Sparks, while retaining structural integrity. thrive in an atmosphere of uncertainty," Chevron Resources Co.'s Western Re he says. "Since we maintained contact gional office in Reno, and geothermal ..ith those businesses, we were able to interests located at Desert Peak, Foreign Business bring tben intO our area when the eco Beowawe, and Steamboat Springs. Increases In Nevada nomic picture stabilized." "Sewer pipe is generally OUl of sight, This quarterly report was the first in a out of mind, " says Spirolite General For the first time in three years, fer series of reports EDAWN will be pre Manager Eric Kemp. "But concrete, eign businesses have made up nearly 20 paring to track economic diversification clay and iron pipe are prone to leak and percent of new jobs in the Washoe eeecs. Says L}TIn, "We have a master corrode; especially here in the West, County market. according 10 a final f15- (Cont inued on pugt 411 16 THE NEVADA BUSINESS JOURNAL'October 1987 - Alan J. Beard ARCHITECT AwardWinning Design 5-2 THE NEVADA BUSINESS JOURNAUOCtobef' 1967 THE STATE OF 1'IiEVADA EXECUTIVE CHAMBER C.. reon Cit y. Nevada 89710 RICHARD H. BRYAN TElEPHONE Gov~rno, Oc tober 1. 1987 (702) SSS-S670 These are exciting times i n Nevada as our economy enjoys t he fruits of our economic diversi fication efforts . Your bui lding , upon comp letion next su mmer , wi ll be a grand ad dit ion to the available off i ce complexes des i gned t o serve companies co ns idering Hevada as the ir new home . It i s a great pleasu re for me , as Govern or , to compli ment the par t ne r ship on the start of construction of the 100 West Liberty BUi l di ng . Si n7{rel Y,! ') II lu"i84-: ~ jlN Gove rn or I y I RHB /cd I , \ Contents 100 West Liberty Building 5-6 BUilding A Landmark The partnership behind the 100 West Liberty Building has melded the ideas of many into one stunning Reno landmark. It's a remarkable achievement and a remarkable building. 5-n ROOm FOr Growth Unlike many cities across the U.S.. Reno in not threatened by an office space glut. The 100 West Liberty Building is a welcome addition 10the city's skyline. 5-12 Putting Stock In Reno Robert Oant came c lose to selling his parcel of land on Liberty Street in Reno. When Preston O. Hale convinced him 10hold onto it. the 100 West Liberty Partnership wa s born. 5-14 An All-star Uneup The t OO West Liberty Partnership wanted to build quality, so Ihey put together a roster of the finest sutcootrac tors available-many from fight here in Reno. 5-16 A 'Class A' Project All The way The terraced design of the 100 West Liberty Building is only its most striking feature. Top quality mate rials, both inside and out, project a commitment to excellence. Jensen Electric Co. 5-14 5-19 LUCky COncrete Duo-Flex Corp. 5-14 5-19 J.B. Iron Inc. LC. Pardue 5-15 5-19 CBD Interiors D & D contractors Inc. 5-15 5-22 SUperior Tile CO. smith & COliup Construction 5-22 cavallero Heating & Air COnditioning & Development Co. 5-15 5-22 landry'S carpets Inc. Far west steel Co. 5-1B 5-22 Ticer Title clacomazzi, Hermann 5-22 NevCo Mechanical Inc. & Associates 5-18 5-23 vaughn Materials Co. Advertising coordinated b). Jack O)u S-4 THE NEVADA BUSINESS JOURNAlJOctober 1967 Building A Landmark The partnership behind the 100 West Liberty Building has melded the ideas of many into one stunning R eno landmark. It's a remarkable achievement and a remarkable building. ""'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' By Bob Belknap """""""""""""""""""""""""""""""""...... iewers of public television dur had owned in do....ntown Reno for many pecially in the downtown area, with a ing the past year may have years. particular weakness in the ab ility to pro noted a feature segment done Preston Q. Hale Co., which bears the vide a large block of space to a company Vby Bill Moyers on the creation founder's name (Hale is still very active ....ishing to locate in Reno. of the U.S. Constitution. The underly in the firm), is a 30-year-old company Bob Schriver, assistant director of the ing current of the program is that the ....ith one office in Reno that specializes Economic Development Authority of Constitution was subject to great de- in commercial real estate services-c-leas Western Nevada (EDAWN), agrees that bate, much arguing and eventually com ing, brokerage, feasibility studies, and Class A office facilities are in short sup promise before the document was rati ply. Schriver says there is a deman d for fied in its final Conn. Teamwork. a pull the more prestigious facilities and loca ing toge ther of a variety of disciplines. Several large tions as opposed to the smaller com heritages. wants, needs, likes and dis- plexes in outlying areas. likes created this great document. For companies have Developers of the 100 West Liberty those who remember their history. it was Building hope it will be pan of a grow no small task. . already expressed ing financial center south of the Truckee A parallel can be drawn to a mam River in Reno. moth undertaking occurring in northern interest in leasing Dick Barry , executive vice president Nevada. space in the of Security Bank of Nevada in Reno According to Frank Gallagher, senior which is one of the financiers of the pro partner at Preston Q. Hale Co., a building. ject. says he believes the centralization privatelyowned partnership in commer of Reno's financial and business indus cia! real estate in Reno, it has beenteam try is a good thing . "I don't kno..... if it is work from a variety ofareas that put to ownership-management of commercial by accident or by design, but it seems gethe r the 100 West Liberty Limited facilities in the area. that the casino ind ustry is doing their ex Partnersh ip and is the force behind the For Dant, Preston Q. Hale Co. be pansion to the north and the business new building under construct ion on the came the local partner ....ith the local ex community is moving to the south of the southwest comer of Sierra and Liberty pertise and kncwledge as well as the downtown area. I' ve got to believe that streets in dowmo....-n Reno. While there source for the local resources that the this is a good thing for the town. The are three principal o....ners in the 100 West Liberty Building .....ould need. casinos generate a higher volume of building, there is a list of at least 11 key There are actually five partners in the tourist traffic which is the opposite of participants in the project that have, un group including Roben Dant, chairman the business sector." der the leadership of the partnership, of Dant Development Corp., Preston According to Day, the 100 West Liber tak en the project from an idea to the Q. Hale, Frank Gallagher, T.J. Day and ry Building ....ill attract high-quality busi structure that is now being erected. the fifth partner, The Arthur A. Warren ress, He savs the ground floor will be It was the Dant Development Corp., Co. of West Covina, Calif. a'\-aiIabIe for lending institutions, stock of Ponland, Ore., says Gallagher, that T.J. Day, also a senior partner at bnXers and cebers .....he require a higher approached the Preston Q. Hale firm Preston Q. Hale, says Reno has a great profiIIC and the visibility that a street-level about developing land the Dant family shortage of quality offic e space, es- from _-ouId offer . " We are in hopes of se THE NEVADA BUSINESS JOURNAUOCtobef 1987 filleting a larger fum who might occupy tures a ground floo r designed for high says. " It's high class office space and the top two or three floors as a regional visibility and clients that require foot there is a proven demand for high class or national headqueners," he says. " We traffic. floo rs two through five are office space. We bad absolutely no thenhope to fill the center of the building par king garage and floors six through 12 problems when we presented this to the with the professional type ofservicessuch are for general Class A office use. There city: ' as lawyers. accountants , real estate is a penthouse on the top. Sum mit Engineering was responsible brokers and insurance agencies." The building exterior will feature rich for securing all the approvals from the Several large companies have already structural brick panels alternating .....ith Reno Planning Commission and City expressed interest in the building. ac sections of reflective glass and land Council. Due to the finn's good work cording to Gallagher. although they are scaped terraces along the south side of ing relationship in the state, it was pro not ready to announce any plans or in the building. perly prepared in presentations and se tentions. " At this time we are not Day says one consideration in plan cured the proper approvals with a mini prepared to announce any tenants with ning the building was the incorporation mum of difficulty. Notes Tom Gallag whom we are negotiating because of the of color into the downtown Reno area. her, " The people fro m 100 West Liberty sensitive nature involved in any relo Reno's downtc .....n is home to many Limited Partnership were very prepared. cation," he says, "especially where a buildings with white concrete facades. When they entered the meetings ....i th the company may be seeking to move from The tOO West Liberty Building, with its city they had the model present and had one comm unity to another. with the ob red brick sides, will certainly stan d out done their homework." vious personnel concerns. " in a very appealing manner. Developers have come under fire in Preston Q. Hale notes that businesses The building also incorpo rates as Reno in recent years for their major es- already located in northern Nevada much ease of use as possible. One exam pansion plans-mainly i thin the casino might also be attracted to the building. ple is the inside parking garage that is industry in the do wnto n area and in Reasons include "a need to expand the accessed by the same elevator that goes the housing subdivision projects . Frank operation when there is no expansion Gallagher not es that the 100 West liber room in their present office situation." ty Building isa different no-pe of project. says Hale. "Secondly, to upgrade their One consideration and says it " ill not have the traffic im existing space. and finally to have the pact on downtown that the casinos have opportunity to start with a clean piece of in planning the and will really bring man y positive paper and beable to redesign space that, building was the benefits to the city. for whatever reason, has become a little Gallagher says he personally disagrees obsolete." He explains that most leases incorporation of wi rh the city's negative views of expan are set up on the basic need of the tenan t sion ofcasinos and the tourism industry. who must wait for the "office next color into the down " We have to realize that tourism is ou r door" to become available before ex No . 1 industry and that it has to be panding. " Eventually people wind up town Reno area. something that is treated fairly in this expanding into a ' rat maze' that hinders community," he says. "Basically the the total operation ," he says. to the office areas . Many office com hotel-casino industry is the factor in Ne Gallagher believes that an expansion plexes require the tenant to walk outside vada that has enabled us to put forth a option in leases will be a major aurae to get from garage to building, or have a business climate that is attractive to vir tion at the 100 West Liberty Building. series of elevators to reach offices. tually every state in the cou ntry. They He says the typical company moving to " We're trying to gear our tenant roster are truly our background and backbone Reno is one that needs the space and around a full service atm osphere within of the economy. Philosophically, I am, needs it now . Unlike a manufacturer the building and an ease ofoccupancy," and I'm sure most everyone else is. in fa who designs and builds a new plant fa says Day. vor of good quality growth, but I think cility, service-type companies mo ve The building includes four high-speed that an attitude of no growth can really Quickly and the space bad better be electric traction elevators. These wilI hurt us. available or Reno could lose out, he sen-e the entire building including the " As it relates to this project." he says. parking floors, and have been deemed adds, " we have had excellent partici pa " Yes. there is a risk for us here more appropriate and functional than tion and cooperation from all areas of because we're building largely on specu the more common larger and slower ele the city of Reno. We really appreciated lation ," Gallagher admits. " However, vator cars. Hale says this is one of the their assistance and foresight." the market has demonstrated that there security measures that has been incor Coordination is critical in the con is a need for this type of project and we porated-the above-ground parking en struction of a project such as the 100 are confident that it will be succesful." hances visibility and reduces the amount West Liberty Building. Dan t Develop The terrace design of the building was of time that a tenant must spend getting ment Corp. chose Hoffman Construc the idea of Alan J. Beard, the partner from his automobile to his office. tion Co. as the general contractor. The ship's architect from Portland. Ore. Tom Gallagher, president and CEO 65-year-old Portland. Ore.-ba.sed com Gallagher describes the concept this of Summit Engineering Corp.. a pri pany is an employee-owned. privately way: " .. .as much of a suburban aunos vately owned corporation based in held corporation doing business in ex phere in a down town high-rise building Reno. performed the geotechnical cess of$13O million annually. According as we possibly could achieve." studies on the site. "This project was ex to Don Smith, vice president of opera The 100 West Liberty Building fea- tremely clean when it went through." he tions, the company has broad and var- THE NEVADABUSINESS JOU RNAUOCtober 1987 5-7 s-a THE NEVADA BUSINESS JOUANALJOctober 1987 ied experience in building this type of tion ....i th ~ e-.·ada National Bank and Se request of the Hal e Co. due to their ex high-rise office building, as well as curi ty Bank of Nevada. The participa tremely good and close working rela numerous other types of structures. tion of the two Nevada-based banks tionship." Hawkins goes on to say that Some other facilities to the company's stems from the same teamwork concept the relationship has been very good and credit include the 35-story Federal Of that has been the hallmar k of the project that Security Pacific is very pleased with fice Building in Seattle, w ash., the from the beginning. Security Pacific all of the players in the project . waste-water treatment plants in both needed local expertise and knowledge According to Security Bank of Ne Portland. Ore., and Spokane, Wash., which Nevada National and Security va da's Dick Barry, the project was far the Pacific Northwest Bell Telephone were able to provide. tOO large for one bank like Security building in Seattle, plus numerous Security Pacific National Bank, the Bank or Nevada National to handle due others in the West and Alaska. nation's seventh largest bank and head to limits imposed. by federal law. Says Hoffman Construction is making a quartered in Los Angeles, is the primary Barry, "Security Bank's role is the strong effort to utilize local com panies lender behind the project, Dant Devel smallest of the th ree banks involved. Yet for the subcontracts. In addition to opment Corp. had contracted with Se it was a very natural marri age and very creating good \\iII within the commun curity Pacrific Mortgage Co., a subsid routine. We know and are very familiar ity, the company can draw on local iary of Security Pacific Corp., to talk to ....-ith two of the three principals in the talent and ab ilities. prospective lenders about the project. partnership." In fact, Security has en " The 100 West Liberty Building has Howard Hawkins. vice president and joyed a relationshi p ....-iththe Dant fami been a very smooth operation for us," region manager for the national real es ly during the many years they were ac says Smith . "There have been virtually tate department at Security Pacific, was tive in the Reno area. no pitfalls or problems and we have pan of a team which included Cindy Gallagher says that it required numer been extremely pleased with the work of wenzla u, assistant vice president of the ous inquiries before the partnership was the subco ntractors." department, and Ev Cope, senior vice able to come to terms with Security Pa Gallagher confesses that the project's president and administrator of the na- cific. It was important to the partnersh ip one realobstacle was financing, but adds to find an institution that would not on that the problem was smoothly resolved. ly finance the project but would also be There is a reluctance on the pan of The inside a key player in the success of the ven financial institu tions to loan on such ture, he says. projects since most of them already parking garage is Most maj or construction projects opt have, within their o....n portfolio, at least for the tried-and-true groundbreaking one or two such buildings in places like accessed by the same ceremonies ....-ith all the dignitaries lined Dallas, Denver or any of a number of elevator that goes up to tum a shovel of din while wearing other communities. They may fear creat brand new, shiny hard hats. But the ing a glut in Reno office space, as exists to the off ice areas. brainstorm of the project's public rela in some other areas of the country. tions man , Mark Curtis, proved to be " The size of the finan cial institution unique and in line wi th the philosophy that you need to finan ce this size of pro tional realesta te department to build the of 100 West Liberty Limited Partner ject makes (the financial institutions], financial package for the project . ship. obviously, key players in ot her markets. As announced in July of this year, Se At the top of the first floor on the And rather than finance another office curity Pacific Bank has purchased Ne Liberty Street side of the building is a complex they'd prefer to sell you an ex vada National Bank with the take-over major girder beam that was painted isting building they already have on the slated for early 1989. blue. It now bears the signatures of all books," Gallagher says. Hawkins says that the market cc ndi the major participants in the project in Primary financing for the project was tions were ripe in Reno for a high-rise cluding a few dignitaries such as Reno's secured through Security Pacific Na office complex since none had been built Mayor Pet Sferrazza, banking officials, tional Bank in Los Angeles in coniunc- since 1982. a couple of prospective tenants and a Wenzlau, who did the majority of the few local business leaders. market research for the bank, notes, Gallagher had felt they were tOO far "Most leases are " Reno's overall vacancy factor for high along for a groundbreaking and that the set up on the basic rise, Class A office space was under 6 traditional groundbreaking was a little need of the tenant percent . Plus, there seemed to be very cliche. So the speeches were shon and who must wait for the little large square footage space the signa tures ....iII remain inside that available . Plus," she adds, " Reno's building forever. The event. much to the 'office next door' to become pleasure of the part icipants, received available before expanding. growlh rate pattern over the last six or seven years is very good." strong television coverage. Eventually people wind up Says Hawkins, " We brought Nevada The 100West Liberty Building targets expanding into a 'rat National Bank into the picture because June of 1988 for occupancy. While maze' that hinders it made sense due to our acquiring them, Hale, Gallagher, and Day ad mit they'd the total operation. " and secondly because we like to work like to have it completely leased out on Preston a, Hale. fo under. with a local jender to help administer the the da y it opens, they do not assign a Presion a , Hale Co., Reno Financing and the credit reports. Securi timetable for when it ....iII be full. ty Bank of ~n-ada was brought in at the Gallagher reiterat es that there is a THE NEVADA BUSINESS JOU RNAl1OcIobef 1987 5-9 great deal of interestin the building and he hopes that the namesofsometenants can be released in the near future. Gallagher is proud of the project, but doesn't give his company solecredit for iLS success. "There are some very OU[· standing people in this project. The sue cess has been as a result of some real good people and a real strong team ap proach," he says. "The design has been changed numeroustimesand it has been through compromise, cooperation and, The project's one real obstacle was financing, but that problem was smoothly resolved. again, good people, that it hascome to a reality," he says. The teamwork spirit has permeated from the partners, the architect, the en gineers and the contractor to Andrea Pelter who owns Reno Iron Works and .....as as excited as a child with a new toy when the final piece ofsteel wasset, and the people who built the financial package.It has been a teameffort not so unli ke that which created and ratified the Constitution. In 1988 Reno will have an impressive new edifice on the south side of down town that will be not only a community landmarkbut also a benchmark of quality in theClass A office complexmarket. 0 Preston Q . Hale, founder of Preston Q . Hale Co. (center) and senior part ners of the firm Frank Gall agher (left) and T.J. Day, sta nd beside a model of the 100 West Ube rty Build ing. The building·s vibran t color will create a pleasing con trast to sur rounding structures. The West Liberty Bui ld ing is the first high-rise office complex to be const ructed in Reno since 1982. Its sched uled date of co mpleti on is June 1988. 5-10 THE NEVADA BUSINESS JOURNAlJOctober 1987 ditional office space, it has been the na tional and regional operations that are Room contributing significantly to the growth , In recent years Pc rsche Cars North For A merica has established its U.S . head quarters here, and companies such as Growth Freeport ~1c~1 0Ran , Echo Bay Mines, Unlike many cities across the U. S., Reno is not FR..\ 1 Minerals and Chevron Resources have established regional office threatened by an office space glut. The /00 West Liberty operations. Building is a welcome addition to the city 's skyline. EDAWN presents the attributes of ======By Bob Belknap======Reno in a variety of ways. A major ad vantage (outed is the proximity to the eno's office space mar ket ap Reno-Spark s is seeing the development Califo rnia market which includes being pears to be wide open and par of regional headquart ers for those in the same time lone. EDA\\TN also ticularly bright for Class A of ope rations." points to an available work force ofcler Rfice complexes such as the 100 Demand for Class A office space in ical and " gray collar" workers to staff West Liberty Building being built by the downtown Reno has been spurred by the administrative positions that are re 100 West l iberty l imited Partnership general demand. According to EDAWN quired. Finally, and one thing that al and Blue Cross-Blue Shield's Corporate figures, over 1.7 million square feet of most all northern Nevadans agree on, is Pointe being built in the suburban office space currently exists in the down the quality of life which is enhanced by southern portion of the city. town core area. Of that, only 834,(0) Reno's proximit y to lake Tahoe. Reno-based EDA\\ 'N , the Economic square feet is Class A space. The 100 The overall picture for nonhern Ne Development Au thorit y of Western West Liberty Building will add 135,(0) vada continues to be bright , as more of Nevada, has played a key role in work square feet to what's available, bringing these major companies are attracted by ing with both nat ional and regional of the total to 969,(0) square feet. the favorable tax climate and other fice users that are interested in locating Additionally, the 100 West Liberty pro amenities that Nevada has to offer. to nonhern Nevada and the Reno ject is the first major downtown office Naturally, the mo re quality office com Sparks area. " The growt h of the mining project since the Valley Bank Plaza and plexes EDAWN and others have to industry in Nevada has accounted for a Nevada National Bank buildings were show companies considering the Reno large amount of new office use," says completed in 1981-82. Sparks area, the better their chances are Kenneth Lynn,EDA\\'N's executive di While it is normal for local companies of securing them as new residents of the rector . " Because of rural Nevada mines, to expand and relocate, consuming ad- community. c:; JENSEN®pLACESYOU EVERYWHERE ATTHE The Jensen ProSeries '" Digital Automation &Contro l System is a multifunction system that combines fire SAME.TIME and security alarm. vid eo. day-to-day paging and inter com. building automation chores. and process control in a single umt. This allows ~ u constant control and monitoring of all vital areas in a given complex. Hence. ~u 'r e everywhere at the same time. The Pro5eries'" System has t\'licethe capabilities at baH the cost of comparab le systems and it's easily in stalled in both new and retrofit projects. The Pro Serie s' ... flexibility enables you to expand the system according to your needs and it may be installed with or without a host compu ter. For more information write or call: Jensen ·ProSeries·' 140 Jensen Street • Reno. Nevada 89502 • (702) 322-3100 We are proud to have our fire and life safety system installed at 100 west Liberty THE NEVADA BUSINESS JOURN AUOCtober 1967 $.11 Says Eisenberg, " We became com Putting mitted and set out to undertake this pro ject. It was really a case of following two key ingredients. First was to respond to Stock an extremely detailed market study and secondly to build the best quality pro In Reno duct we could produce effkiernly. We call thai the key formula for value." Robert Dant came close to selling his parcel ofland on He says the partnership pulled to Liberty Street in Reno. When Preston Q. Hale convinced him gethe r the best and most experienced to hold onto it, the /00 West Liberty Partnership was born. team il could find. developing a detailed work plan and assuring that each ele ======By Bob Belknap ======ment of the team flows through 10 the final result. rom time to time around the 100 Reno is the 38-year-old president of Dam adds that it was a co mposite of West Liberty Building you may Dam Development, Paul Eisenberg. leasing, property management, develop find a rather tall and slender , dis According to Dan t it was his father, ment, mo rtgage banking, construction, Ftinguis hed looking man ....ith a in 1979, along with his best friend and architecture and engineering . " Under grey beard and slightly greying hair. partner, who bought the piece of prop Paul's [Eisenberg} direction as 'project He'll probably be .....earing a business erty at the corner of Sierra and Liberty manager,' it has all come together, " he suit and a bright orange hard hat and be streets while he was a resident of Incline says. The coordination has been run very quietly surveying the construction Village. The elder Dan t now resides in through the architect's office , the Dam of the building on the land that his Portland and is retired, but he claimed office in Portland and the Hale office in father originally owned. Nevada as his home fo r IS years. The Reno. That man is Robert M. Dam; Bob as younger Dam bought into the part ner Dam jokes that it has almost required he preferes to be called. ship in 1981 and comrolled the piece of a FAX machine in each office-but so Dan t is the 38-year-old chairman and property. far they bave managed ....ithout. sole shareholder of the Portland, Dant says he had originally wanted to The men reflect on the process under Ore-based Dam Developrnem Corp. sell the property back in 1983. It was taken prior to even consulting an archi and one of the principal partners in the Presto n Q. Hale, of the Preston Q. Hale tect. Says Eisenberg , " We walked 100 West Liberty Partnership. Co., that convinced him in 1984to build through every major office building in Frequently accompanying Dant to on the site rather than sell it. do....m own Reno to loo k at what had (Left to Right) Robert Dant, chairman, Dant Develop Q . Hale Co., inspect work at the 100 West U berty ment Corp., Paul Eisenberg, president, Dant Develop Building project in Reno. ment Corp. and Frank Gallagher, senior partner, Preston $-12 THE NEVADA BUSINESS JOUA NAlJOc1ober 1987 been don e right and what were me and found an able assistant in Security outstanding teamwork. They praise the shortcomi ngs. We talked to tenants to Pacific ~ t ortgage Co., and the ultimate work of the Hale Co., the architect find out me kinds of things they wanted financing through Security Pacific Na (Alan Beard) and the Evergreen Mort and needed. We had developed a perfor tional Bank, ....i th local support from gage Co. for sticking ....ith the project mance criteria which included costs , both Nevada National Bank and Secur through thick and thin. rents, building size and the materials." ity Bank of Nevada. " In every aspect, from the construe Dant adds that the state-of-the-art Says Dam . " It became very impor rion company to the subco ntractors, to technology in high-rise, Class A office tant to know the Reno market very in all levels of the project, it has been void buildings was decided upon. "Ofcourse timately and to present it in that kind of of the typical adversary relationships," we were in a good position for this also, vein to the lenders. Each one we talked says Eisenberg. since the last building in the market was to became very aware of the potential Reno must wait until the summer of built in 1982. here and we found a lender that was 1988 to welcome its newest addition to Eisenberg confesses that the most dif thin king as we are and loaned the the skyline. Then it ....ill be able to point ficult portio n of the project was securing money for (he project ." to it with a great deal of pride. It tru ly the financing. " W hen we started loo k Dant and Eisenberg emphasize that represents some of the finest that north ing for finan cing the term 'office build the underlying theme of this project is ern Nevada has to offer. 0 ing'-and a speculative one at that was a dirty word in the banking world," he says. " These potential lenders were looking at vacancy rates in excess of 25 F AR WEST S TEEL percent in markets like Houston, Den ver, Seattle and other major market F ABRrCAT ORS INC. areas ." And so the process began with selling Reno as a good location for an office STRUCTURAL STEEL, ORNAMENTAL IRON building from one end of the country to MISCELLAN EOUS IRON, PLATE WORK the other. Eisenberg says that every one FABRICATION AND ERECTION of the lenders was very impressed ....'ith the prospects and potential for Reno. 702·348·0773 Nev. Yet nobod y was ready ( 0 lend the money needed. 307 MORRILL AVE., RENO, NV 89512 It was Portland -based Evergreen Mortgage Co. that played the lead role Construction Financing For The 100 West Liberty Building Provided by 5S , SECURITY PACIFIC NATIONAL BANK and _.Nevada NationalBank THE NEVADA BUSINESS JOURNAlJOctober 1987 5-13 An All-star Lineup The 100 West Liberty Partnership wanted to build quality, so they put together a roster of the finest subcontractors available-many from right here in Reno. By Lauren Belaustegui and Joanne Eshow-Faretto ""'''''' .... nlike most large developers, den's duty to develop line-item costs Jensen Electric is responsible for all of Dam Development of Port and hire subcontractors, Eisenberg says, the building's electrical installations. land, Ore., has played a major " We did express our wishes to use as Snow-melting equipment is another Urole in the planning stages of many local companies as possible." example of what high technology has the 100 West Liberty Building commer done for convenience. Jensen is instal cial complex, being constructed in the Jensen Electric Co. ling snow-melting mats below the garage heart of downtown Reno. floor and sidewalks surrounding the President of Dam Development Paul Jensen Electric Co. of Reno has de building. These mats work off sensors Eisenberg says his company worked veloped and installed several fire alarm that are responsive to the outside en rather intensely with an architect and and security systems for large projects vironme nt's temperature and moisture learn of mechanical, electrical and struc such as the 100 West Liberty Building. content. When the sensor indicates the tural engineers to plan and develop the This job however is unique, as Jensen level of each element needed to create building's specifications. has recently developed what the com snow, the mat heats up, thereby melting " We are always very active in the de pany calls the " Jensen ProSeries Digital any ice or snow that may build up and sign process," says Eisenberg. " Most Automation and Control System," become hazardous to pedestrians or cars. contractors have a general goal and lay which is being installed in downtown With four workers on the job, Jensen it out-we get down to the nuts and Reno's newest office building. says his company will " probably be the bolts." According to Gary Jensen, president last ones out the door, and we were the Energy management, space planning, of Jensen Electric, the m icrocomputer first ones in. That 's typically the way it building security, structural design and based ProSeries system can be program is for electricians." visual aesthetics have all been examined med to provide early warni ng and auto and drawn out for general contractor mate necessary measures to help ensure Duo·Flex Corp. Hoffman Construction Co. , also of life safety. Portland. Jensen says if a fire were to break out The Duo-Flex Corp. of Reno has just When considering building specifica in the 100 West Liberty Building, the begun its task of installing the sprayed tions, Eisenberg says his company sur ProSeries would activate a fire alarm, fireproofi ng, synthetic plaster, acousti veys the market to determine where trigger the sprinkler system, tum on an cal ceiling work, plaster and drywall needs lie. Next, the competition is ana intercom to tell people where to go and ....-ithin the 100 West Liberty Building lyzed to see what has been done right what to do , recall all elevators to the and its parking garage. and what has been done wrong. " We ground floor, call the fire department Duo-Flex manager Frank Omboli strive to build the most competitive and pressurize all stairwells to avoid says his company's portion of work will building in the marketplace," he says. smoke build-up in escape routes. take up to six months to complete. The Competitive it is. When completed in "Nevada is among the states with the number of workers on the job ....ill vary 1988, the 100 West Liberty Building will most stringent fire codes in the nation. depending on which phase ofthe project be equipped with quality, high-tech fea We wanted to make sure we came up is being completed. Om boli says at times tures usually forgotten because of their w-ith something that would meet all of there ....ill be as many as 35 people on the cost. the requirements," says Jensen. " We job. Although it's Hoffman Construe- are certainly proud of our new system." The 100 West Liberty Building calls 5-14 THE NEVADA BUSINESS JOURNAUOclober 1987 for a unique acoustical ceiling system. nine months to lay brick for a building " stay away from it because of the cost." Omboli explains that while the stand ard of this size. The panels, which are being Another advantage of the low-main ceiling module is two foot by two foot hung with a crane, will be placed in ap tenance, single-ply IRMA roof is that or two foot by four foot , the modules proximately five weeks by seven to 10 while being installed the materials can made by Armstrong World Manufac workers. And, because the inserts are withstand temperature extremes. That rurers for this project will be five foot by made of real brick, there is no visible isn't the case w-irh asphalt roofs. five foot, and in some instances 20 in difference. Below-grade waterproofing is another ches by five foot. The larger modules are " From a developer's point of view job being done by D & D Contractors. designed for open office spaces or cu this method is certainly advantageous in This task entails applying waterproofing bicles, which is primarily what this more respects than one," says Pardue. material to any area where a grade is building will consist of. The panels have been fabricated by above a livable space. " I refer to the ceiling system as uni L.c. Pardue Inc. and were shipped to Traffic coating in the building's que because its design makes it possible Koffler Masonry, a local finn serving as garage will require two applications of to locate light fixtures differently and subcontractor to Pardue. They are being liquid urethane 10 protect and water much easier than most conventional de erected by Tiney Steele of Portland, proof all 100 West Liberty Building sur signs. The modules are also compatible a re. faces. The liquid urethane will also serve with the building' s cubicle sizes. All of as a skid-resistant material on the garage these factors are advan tageous when it D & D Contractors Inc. floor. comes to office switching and expan Other major local projects D & D sion," says Omboli. Roofing. damproofing, traffic top Construction Inc. has been associated This is Duo-Flex's first experience ping and deck coating work will be with include the Peppermill Hotel, Nug with the installation of this type of sys handled by D & 0 Con tractors Inc. The get Tower addition, Comstock Hotel tern and, to Omboli 's knowledge, only commercial roofing and commercial in addition, University Village Shoppi ng the second time it has been used in a dustrial re-roofing firm in Reno ....,11 be Center and the Home Shopping Net Reno business building. The system was on the job approximately four months. work on Longley Lane. one of Dant Development's building Assistant Manager for D & DBill specifications. Lampson describes the IRMA Roof (In W.R. Grace Co. is the manufacturer verted Roofing Membrane Assembly) Smith & Collup of the "Monocoat" fireproofing mater being used on the 100 West Liberty Construction & ial Duo-Flex will apply with a high Building as "the Cadillac of the in Development Co. pressure spray system to primary build dustry." ing structures such as I-beams and col "As opposed to conventional roofi ng A soils report completed by Summit umns. Specifications call for a two-inch assemblies," he says, "the IRMA Roof Engineering in Reno showed the largest thick coating which requires approx membrane is positioned underneath the rocks at the 100 West Liberty Building imately three spray applications. insulation rather than on top of it. As a construction site to be approximately Established in 1952, Duo-Flex has result, the membrane is never exposed to two feet in diameter. But as Smith & beeninvolved in several major local pro harsh elements so there is less wear and Ccllup Construction & Development jects. Circus Circus Hotel-Casino, Sands tear." Co. prepared to begin excavation. Regency Hotel, Comstock Hotel-Casino The membrane Lampson mentions is workers were immobilized by several and Physicians Plaza are a few ex manufactured by Carlisle Syn-tec Sys 15- to 18-ton boulders. some of which amples. The company is currently work tems. It is made of a rubber-type had to be split because they were {IX) ing on the Professional Office Building material which is loosely laid over a con large to load on a semi-truck. Complex behind Washoe Medical crete slab. The insulation, manufactured According to Ted Smith, president of Center. by Dow, is placed on top of the mem Smith & Collup, the unforeseen compli brane. Next, a protective coating is in cation caused a substantial delay." We stalled to protect both the membrane figured it would take us two weeks to LC. pardue Inc. and the insulation. The whole assembly complete the job. It too k us five," he is then secured by a ballast system. says. The exterior of the 100 West Liberty Lam pson says intelock pavers are be Because the boulders were so large, Building will be comprised of 426 four ing used on this project as ballast be they had to be hauled away one by one. and-a-half ton , ao-roor-bv-seven-rcor cause they are believed to be superior Those that wouldn't fit in trucks had to brick panels manufactured and supplied and work best with the IRMA system. be drilled and split by an expanding by L.C. Pardue lnc., a masonry com Approximately 3.OCQ pavers, at 88 compound. Smith says 70 loads of rocks pany based in Tualitin, Ore., and pounds apiece, will beused. The roofing bigger than eight feet in diameter were established in 1954. assembly ....ill be tacked at regular inter taken off the job site. Lenny Pardue, owner and president vals by one or two pavers, and at all cor "Hoffman Cons truction is a very of L.c. Pardue, explains that while the ners of the building by a to-foot-square good company to work for," says panels are new, and therefore not yet area of interlocking pavers. Smith. " That, in itself, made our job a widely used, they have proven to be ex " This is only the second system of lot easier." uemely cost-effective and time-saving. this kind to be used in the Reno area. Site demolition , sub-grade prepara Pardue figures it would take six to Most local companies." Lampson says, (Conrinued onpage 5-18) THE NEVADA BUSINESS JOURNAUOctober 1987 $-15 A 'Class A' project All The way The terraced design of the 100 West Liberty Building is only its most striking feature. Top quality materials, both inside and out, project a commitment to excellence...... By Bob Belknap .... f you were to sit on the top Floor of The 100 West Liberty Building .....as Tamio Fukuyama, who wor ks for one of the major casinos in down designed by Alan J. Beard, one of the Beard. says design plans for the building to....n Reno and scan the skyline you principals in an architectural fum were changed four times before finally I would see a lot of white, concrete kno....-n as GBG BD Architects of Port being approved. buildings. These are all very attractive land , Ore. , soo n to be renamed G BD Originally it was to be a IS-story buildings.But they have a sameness Architects. Beard was hired by the Dant building located on top of a hill at Sierra about them that gives a star k, maybe Development Corp. , also fro m Portland and West Liberty streets in downtown even bland, look to the area. and one of the partners in the project, Reno. This would have made the build Repeal the act anytime after ~ I ay after the formation of the partnership. ing second only to the FIBBuilding in 1988 and you'll see a ne.....comer to the Beard, not the company, is the princi terms of office building height. The skyline tha t is a breath of fresh air. It pal architect for the project because of building was reduced to its present 12 will be a Iz-story building plus pent his license to practice in Nevada. A stories plus a penthouse as a result of the house on the south end of the do ....n marketing study. apparent demand and to....n core area, just south of the budget considerations. It will still tower Truckee River at 100 West Liberty Design plans over most of the Reno skyline due to its Street. position on top of the hill. The building? For now, it's called the f or the building According to Fukuyama, geotechni 100 West Liberty Building and it' s being cal studies on the project indicated that built by the 100 West Liberty Limited were changed four it would be very expensive to build par k Part nership. times before finally ing facilities below ground . The benefits By design, it will stand out in the of above-ground parking included the downtcwn Reno area. By virtue of its being approved. fact that it wculd be more cost effective. size, location, and appearance it ....ill it would require no anificial ventilation. rapidly achieve the status ofa landmark. it would have the effect of raising the It ....ill also stand out as an appropriate quirk in Nevada law requires the licens building wi th the tenants located on the place to conduct business due to the ing of a single architect rather than a floors above the parking and it would painstaking attention to quality con firm, for projects in the state. There provide better security for the tenants. struction, funct ion, efficiency, and at fore, all staff are practicing under the Fukuyarna says the building will have tentio n to its purpose as a financial and license of Alan Beard. a VeT)' "classy" look.....ith a brick and business center. Beard 's company has earned a nam e reflective glass exterior. The brick. he Frank Gallagher, senior partner of for itself ....-ith major building proj ects all says. is actually structurally fabricated Preston Q. Hale Co ., the Reno-based over the country, including the 200 brick panels. partner of the 100 West Liberty Limited ~1arket Building in Portland. the Den Fukuyama indicates that use of the Parmersbfp, applauds the team work of ver Highlands and Two Denver High panels. which range in size from two feel the key players w ho have taken the pro lands buildings in Denver. the Olive by seven feet to five feet by 30 feet, ject from concept and idea through Grove Active Retirement Center in greatly reduces building erection costs. market research, design, approvals. and Southern Califo rnia and the interior de Not only are they less expensive to build into construction. The building is less sign of the Servio Executive Resources and ship, they also allow greeter control than one year away from completion . Center in New York City. in terms of angles being COITCi;t and u. ~ S.16 THE NEVADA BUSINESS JOURNAUOctober 1987 completed wall being plumb. ity. Additionally, special storage and be able to not only control the tempera Alternating with the panels of brick mail areas are planned. The storage fa ture but the air flow delivered to each will be solar reflective glass panels. cilities will total approximately 8,OCO to area, as well. This will provide an effi Says Fukuyama, "Some people be lO,OCO square feet and will be available cient heating and air conditioning sys come very concerned about a mirror for lease to tenants. tem that will " rank am ong the best in finished building. This is a very lightly According to Gallagher, one tenant Reno," accordi ng to the architects. Also tinted finish glass that really has a bluish package allows new tenants to decide specified are parabolic lighting lenses tint to it that will go very nicely with the upon most elements of the interior of which many consider preferable to the surroundings. " their particular office. Large floor plans standard, flat ac rylic lensed style lights, The glass panels are doub le-paned run as large as 12,525 square feet to and which reduce glare-particularly glass with the tint on the inside piece of 19,955 square feet, and tenants will have beneficial to those using computer glass, providing both insulation and a wide variety from which to select. terminals. protection of the tinting from Mother The tenant package will include attrac Gallagher says that the 100 West Nature. tive vinyl-covered demountable walls on Liberty Building will have as much As the construction process con tin office- floors which allow's for tenant quality built into it as possible. ues, passers-by will notice that comer growth and flexibility with a minimum of Fukuyama says that every ar chitectual offices do not have columns. This allows cost and inconvenience, says Gallagher. aspect of the 100 West Liberty Building for lo-foo t glass panels, and greatly Particular attention has been given to has been exami ned and studied. He reduces any wasted space while enhanc tenant comfort, says Fukuyama. Each says that this building is one that will be ing the view. Executive suites will be lo floor, and subsequently each office, will bo th fu nctional and efficie nt. 0 cated on the corners where the view is the best, according to Fukuyarna. Probably the building's most striking feature is the terracing on the south side. It begins above the par king garage area and involves six floors. Fukuyama says this design gives the building greate r floor-plan flexibility. " It gives those south side offices a patio approximately 30 feet by 130 feet and an excellent view to the south including Mt. Rose," he says. Taking into account northern Ne vada 's extremes in temperature, the building is fitted with an Inverted Roof ing Membrane Assembly (IRMA) sys tem. The system utilizes a concrete deck covered with a roofing membrane. fol lowed by insulation and concrete pavers. The building's north side will feature a tile mosaic which will be done by an as-yet-unnamed artist. On the Liberty Street side there will be num erous plants and landscaped areas which will enhance and soften the appearance of the build ing. Because of the potential for pro longed periods of " icy sidewalk cond i tions," there will also be a heated side walk on the north side as well as around the secondary entrances. The 100 West Libert y interior will be a showplace of office complexes, with all African mahogany doors complete with hardware of oil-rubbed bronze and brass accents. TIle building's lobby will have a marb le floo r with carpeted areas, brass elevator doors, finely textured wall materi als for added warmth and style, and a custom-mad e chandelier. Tenants will be able to take advantage of a first floor exercise room with a The 100 West Liberty Buildi ng wi ll feature terracing on the south side and complete locker roo m and shower faciJ- a tile mosaic on the north side. THE NEVADA BUSINESS JOURNAUOCtober 19875-17 jects to create the best team for a general All-star contractor." Giacomazzi says he and Hermann Lineup saw a need for this type of consulting (Continunljrom page S-I51 work in nonhero Nevada. "Our objective is to get projects tion, and all undergroud wor k was also built," says Giacomazzi. " A lot of pro done by Smith & Collup. A total of ~ jects aren't built because of budget workers. nine or 10at a time. were on problems. We try to come up with better the job 10 weeks. facility designs, by improving the Other projects Smith & Callup has designs or coming up with cost-saving worked on include the Baring Village ideas ." Shopping Center, New Warehouse Hermann says that he and Giacomazzi Mar ket shopping center on South began working ....'ith the general con Virginia Street, Skyranch Nonh sub tractor,Hoffman Construction, about a division, and the 5800,00) Indian Hills Ciacomazzl, Hermann year and a half ago, helping the firm Bridge, located on the Truckee River. & Associates wi th budgeting and later bringing in sub just outside Reno, behind Morrey contractors to do the work . Distributing. Smith & Callup has 57 No....'adavs just trying to keep up with Those five subcontractors include employees. the work can keep subcontractors so Smith & Collup Construction & Devel busy they don't have time to look for opment Co., excavating; J.B. Iron lnc., Far West Steel Co. new projects. Hoping to solve that prob structural reinforcing; Ne'\Co M echani lem two Reno contractors are repre cal Inc., fire sprinkler system; 0 & 0 Established in 1985. Far West Steel senting subcontractors in nonhero Contractors Inc., roofers; Koffler Me Co. of Reno is a fairly new, small com Nevada. sonry, masonry. pany that works in light structural steel, Jack Giacomazzi and Luke Hermann According to Hermann, most of these miscellaneous iron work. and stair rail & Associates, construction consultants, contractors have run into uniq ue or ing. have landed five subcontracting firms special challenges while working on the Owner-President Fred Schwamb says jobs with the 100 West Liberty project. project . Far West has been subcontracted to do " Our primary purpose is to assist "Smith & Ccllup landed some huge miscellaneous iron work and stair rail subcontractors to fmd work in the mar boulders while doing the excavating for ings throughout the 100 West Liberty ketplace," Giacomazzi says. "We do the project," Hermann says. "One of Building. The companycame on-site in that by matching contractors ....-ith pro- the boulders filled up a whole truck ." Hoffman... 65 years of helping to build the West. \Ne're pleased to be serving as a management, technical and capi member of the 100 West Liberty tal resourcesto build large, com Office Tower team. Whilewe are plex projects. Yet our expertise new in Nevada, we've built a vast extends to the smaller project as array of commercialbuildings, well. Regardless of size, we give institutions, industrial and high personal attention to all projects technology fa cilities throughout and analyze all buildingoptions the \\est since 1922. We are an for utmost quality, cost and integrated team of buildingpro schedule controls. Excellence fessionals and engineerswith the demands it. u HOFFMAN CONSTRUCTION COMPANY n Sacramento, California 916/451-2929 S-18 THE NEVA DA BUSINESS JOU RNALJOctober 1987 """ ~ lI B E RTY PLAYE RS "" Hermann says 0 & 0 Contractors sidewalk to prevent ice buildup. Lucky " It' s not a big project for us dollar ....ill be putting a specialroof on the new Concrete is putting in 27S,CXXJ square wise-it's about $71,CXXJ, so it's in the building. " We've been working with 0 feet of concrete and foundation for the middle," says owner James Blueberg. & 0 Contractors and with Hoffman on project. Presently, J.B Iron has three to four specifications on what is required for " We are doing all the foundations men working on the project. the roof and gave Hoffman alternate and concrete on the project," says Ken Fifteen years ago, Blueberg would solutions to the roofing system," says Roybal, estimator for Lucky Concrete. have likely called the 100West Liberty Hermann. " All of the floors have concrete-on project a big one. " I started the busi Giacomazzi and Hermann represent metal decks. We are also doing a lot of ness in my garage. We did ornamental about IO companies in the Reno area. the retaining walls, curbs, gutters and iron," he says. Through the years, the " They have to prove themselves cap sidewalks." garage grew too small as the business able and be competent contractors," Roybal says most of the time, the grew. Blueberg eventually bought out Giacomazzi says. Giacomazzi and Her company has eight to nine men work his partner and now " owns it lock, mann do a financial check of the com ing on the project, which they began on stock and barrel." pany and checks on performance on in June. But when it's time to pour the Some 696 projects later, J.B. Iron previous projects. "I f we have one bad concrete, as many as 30 men are out on does 90 percent commercial structural apple it reflects on the rest of them," the proiect. work. says Giacomazzi. Lucky Concrete, jointly owned by Some of the other projects the com Giacomazzi is a general contractor Clark Knauss and Kim Christensen, pany has worked on include two build who holds an engineering degree and has been in business for eight years. ings for Washoe Medical Center, the who is currently working on his MBA. They employ SS people. " We do main Circus Circus walkway in Reno, the Hermann holds a degree in architec ly commercial flat work," says Roybal. City of Sparks' newest public parking tural engineering with emphasis on Another area project Lucky Con garage and a few shopping centers in construction management. crete has recently completed is Corpor the Reno area. ate Pointe, a new office building in southwest Reno. CBD Interiors Lucky Concrete A decade ago corporate executives Don't be surprised if you see a dry J.B. Iron Inc. generallydismissed the concept of image sidewalk in the ....'inter when you walk in office designas frivolous. Several fac around 100 West Liberty Street in Carson City-based J.B. Iron Inc. is tors in recent years, however, have con Reno. Plans for the Class A building doing all the reinforcing steel on the tributed to changed attitudes. call for heating pads underneath the 12·story 100 West Liberty Building. Rising rental rates have executives CONGRATULATIONS FROM SUMMIT ENGINEERING The 100 Liberty Building project is a team effort and Summit Engineering is proud to be a part of that team . Summit Engineering is providing project approvals. site design. and construction inspection. The 100 Liberty Building is a quality project that will greatly enhance the core of the business community ... Downtown Reno. Congratulations' We were happy to help. • CIVIL ENGINEERING • LAND SURVEYING • PLANNII'G • GEOTECHNICAL • WATER RIGHTS 5405 Mae Anne Ave. 572 5th Street 175 E. Reno Reno, NY 89523 Elko, NY89801 Suite C-5 Las Vegas, NV 8911 9 (702) 747-8550 (702) 738-8058 (702) 736-1801 THE NEVADA BUSINESS JOURNAUOCtober 1987 $01 9 Part of a designer's professional expertise is the abilit y strength, creativity and progressiveness into lamps, to transform abstractions such as dependability. chairs, tables and filing cabinets. S-20 THE NEVADA BUSINESS JOURNAUOctober 1987 looking more closely at whether their has a special message to convey [ 0 the creativity and progressiveness into business address is enhancing the com public and its employees. If every chair, lamps, chairs, tables and filing pany's position. Potential clients, once wall and carpet says somet hing about cabinets," says Domreis. "The process in the door, are increasingly conscious what a firm is and what it does, the en begins with the establishment of a rela of the image conveyed by office sur vironm ent itself is assuming a portion of tionship with a finn's central decision roundings. The result is two-fold. Ex the firm's promotional responsibilities. maker or a management team. Lively ecutives now seek both quality design According 10 Business Wetk, "Out discussions may reveal conflicts that and a design that helps shape and reflect lays for good design are also like ex lead to design solutions. a desired image in the marketplace. penditures for corporate image advertis " A senior partner in a lar ge law firm GBD Interiors is the interior design ing."Moreover, studies reported in may see the firm's strength in its tradi group for Alan J. Beard Architect, (re business and design publications have tion and stability," he explains. " A sponsible for the design of the 100 w est suggested that good interior design, to younger colleague may view the finn as Liberty Building). GBD Interiors has for which image is intrinsic, not only at progressive. The challenge for the the last eight years ta ken a specific ap tracts clients and customers but also in designer is 10 reconcile contrasting per proach to shaping the image of its creases productivity and enhances mo ceptions in order 10 elicit a positive clients. rale wi thin a firm. Executives are finding response from each. Traditional fur "We realize that image, in interior of thai creative design is a wise investment . nishings set against contemporary colors fice design, is the reflection of a com GBD Interiors was established in and fabrics might visually affirm the pany's personality through the arrange Portland, Ore ., in 1979 in response to a harmony that is possible between re ment of space and the selection of col lack of strong interior design services spected wisdom and youthful idealism. " ors, textures. furnishings and lighting," available in that area. Since thai time The goal of a designer is 10 isolate the says Stephen W. Domreis, a principal GBD Interiors has become one of the uniqueness of a particular company. with GBD Interiors. "Every business most respected design firms in the Through extensive interviews one is able has a distinct personality. Northwest and has been continuously to understand the client's needs and "While it may be acceptable, even listed in the prestigious Interior Design direction. Discovering a color that a desirable, for a filmproduction group to magazine Annual Top 200 Interior De client loathes can be more revealing than appear avant garde and eccentric, such sign Giants. kno .....ing his or her favorites. according an image would be inappropriate for a " Part of a designer's professional ex to Domreis. Gradually what is unsuit bank,It he adds. " GBD Interiors is sen pertise is the ability to transform ab able is eliminated and the designer is sitive to this and aware lhat each firm stractions like dependability, strength, able 10 zero in on the finishes. fur- A VIEW FROM THE TOP! a t t h e To p p in g -o ff C e r e m o n y RENO IRON WORKS CO., INC. f abricated and e recte d the struc t u r a l s teel for 100 W. Li b e r ty A HE A D OF SCHEDULEl ,:r'\AT RENO IRON Jt..¥-.YY.. WORKS Co.. INc. 6CXJ Soce IsIenCl D-.ve ~ NV 89431 • 702-35S.1cx::xJ -s<"ce 1 sos- THE NEVADA BUSINESS JOUANAUOCIober 1987 $.21 _~ --....,; - ""''''''''' '''''-- . nishings and a lighting system that most accurately reflects the company's per. Cavallero HeatIng & Tleor TItle sonality. AIr CondItIonIng Most importantly. COSt is not directly Developers of 100 West Liberty have isolated to the type or quality of image Ca va llero Heating & Air Condition signed under a Ticor title liability in conveyed. Domreis says. A good design. ing, a Carson City-based company. " i ll surance policy, according to Western er can create a "ide range of imagery be doing the sheet metal work on the Title Vice President Don Van Epps. through paint colors alone. Careful 100 West Liberty Building. " In the case of the Dam Building, we positioning of a limited amount of " We are doing the louvers and flash signed a lender policy which the lender special finishes and image-making de ing throughout the exterior of the reviewed. We looked for liens on the sign ideas can create as "rich" of a feel building and also ventilation and property to see if there was any pro ing as extensive use of similar materials. weather shielding." says Sue Shirley, blems wi th previous recordings of the " The interior designer's ultimate sat vice president for Cavallero Heating & title and then we issued an insurance isfaction." concludes Domreis. "comes Air Conditionin g. policy.It he says. with the confirmation that he or she has Shirley says the company's main " This is a good size accou nt for us.It accurately translated the information scope of work is installing the heating he adds. " We worked a lot with the received from the client into design ele and air conditioning system, metal engineers on the building to make sure ments that express a firm's image." roofs and aluminium gutters, it will meet title requirements and they Calling the 100 West Liberty proj ect also provided us with the bounda ries a " medium job,It Shirley says and easements for the documents.It SuperIor Tile Co. Cavallero will not begin work on the Becau se of the makeup of the Reno development until the exterior of the downtown area, most developers wish Superior Tile Co. has been operating building is near completion. ing to build must acquire several pieces in northern Nevada since 1975. Th e She says most of the compa ny's of property. as was the case of 100 Oakland-based company is the largest work is residential. "we've done West Liberty. tile company in the Reno area. several apartment complexes. We did " In the downtown area. in order to Pat Stump. office manager tor the Meadows II Condominiums [in get a piece of pro perty large enough, Superior Tile. says working on the 100 Reno] and all the Lewi s Homes work . sometimes you ha.."e to acquire adja West Liberty Building is a unique pro " We have also do ne Pine Middle cent properties. Sometimes the title ject for the company. "It's an in School, an elementary school and we search can take a long time, but this was teresting project. because some im are doing a big part of Baring village," a vet)· clean search," Van Epps says. she adds. Baring Village is a SSOmillion When Dant Development obtained agination is being used in the design.It Stump says. "This is something new shopping complex going up in Sparks. the liability insurance,Van Epps was for us...creating the mural." The company is privately owned by working for Ticer Title Co.• but since Plans on the building call for a glass Ken Cavallero. It employs roughly 4S then. Ticor has merged with Lawyers Title Co. to form Western Title Co. mosaic mural to be done in three col people and is also licensed to work in "Ticor and Lawyers are two of the ors. The mural will be on the north side California. of the building above the main en largest insurance companies in the na trance, stretching four stories high. tion," says Van Epps. " Capital surplus Superior Tile will also be doing part and reserves are abo ut $200 million for Landry'S Carpets Ine. Ticor." of the building's interior, including in stalling marble walls, granite floors and Oregon-based Landry's Carpets Inc. Van Epps says he has signed other ceramic tiles in the public restrooms. will be installing the floo r coverings for large policies in the area including the According to Stump. the company 100 West Liberty Building. " We will be Reno downtown Valley Bank building, made its mark in northern Nevada in installing the carpet and hard wood Lakeside Crossing being built in south Reno. and Corpo rate Pointe. the 19705. "We did all the major hote l floors. The carpet wil l be special area work in the 19705 when Reno was rugs with a small amount of wood ." Western Title Company employs booming," she says. says Wally Herder. salesman for Lan about 60 people and has branch offices Some other projects the company is dry's Carpet. in Reno. Carson City. Incline Village. presently working on or has already Herder says his company's work will Minden and Gardnerville. completed include Corpor ate Pointe, not begin until next February or the new home of Blue Cross-Blue March. He says this is the company's NevCo Mechanleallne. Shield,Meadowood Mall, and the re first job in Nevada. adding that the cent expansion on the PeppermiU company has done a great deal of work One of the reasons 100 West Liberty Hotel-Casino in Reno. for Hoffman Construction Co .. the is considered a Class A building is the In another major project , the com 100 West Liberty general contractor. little things that add up to quality. The pany is putting a brick ....eneer on the " We do a lot of tenant impro..-e building's fire sprinkler system is one Lakeside Crossing office and retail de mer its." he says. "We also did the such factor. velopmeru in sout h Reno. University of Oregon Medical School, Instead of a black iron pipe system. Superior Tile employs about 30 peo and man y electronic firms. Primarily, the norm for the industry. Nevco Me ple. Other branch offices are in San we do commercial work; less than S chanial Inc. will be installing copper Jose. Benicia. and Los Angeles. Calif. percent of our work is residential." pipe. According to Luke Hermann, 5-22 r HE NEVADA BUSINESS JOURNAUOCtober 1987 spokesman for NevCo, " We are the on ly ones that do copper piping. It's better material and lasts longer. " The material costs are a little higher." he notes, " but the labor costs seem to balance it out. It' s a little quicker to put in than black iron piping. " Hoffman Construction .....as very " North ern Nevada's l eading Roofing Contractor" fascinated that a contractor had gotten into an alternative system than ..... hat the industry has been doing- and being suc o Industrial cessful in implementing the copper rae sprinkler system," Hermann says. " Ac o Commercial tually, a plum ber classification is needed because they are working with copper as o Residential opposed to a pipe fiuer who works with CD NTRACTDRS black iron. " INC ~evCo Mechanical does about $1 788-8070 million a year in sprinkler systems in northern Nevada alone. 0&0 CONTRACTORS 5500 Eq uity, Reno, Nevada vaughn Materials Co. Vaughn MaterialsCo. of Reno is sup plying all the steel, hoUo..... doo rs and frames for the exterio r of the 100 west Intoday's world, liberty Building. " Hopefully, .....e "111 be working on the interior with the tenant develop you needa sense ment ," says Ed Menter, estimator for the company. ofSecurity. So far the company has contracted about SJO, NEVADA BRIEFS Nevada Briefs (Continued j fom page 161 plan for diversification , and I trunk it's important to see how we are matching that plan and how changes in the busi ness climate may cause us to modify the plan." Ad Agency Nets Awards For the first time ever, a Nevada ad vertising agency has captured two top national advertising awards in the same year. Doyle-Mckenna in Reno placed as a finalist for the coveted " Clio." known as "The Oscar of Advertising." ~Iark Bayer. agency vice president. and Steve Rusk, creative director . were honored for creative excellence on an invitation created for "Ripley's Believe It or Not !" Museum in New Orleans. The agencyalso received a Silver "Ef fie" Award fro m the American Mar ket ing Association at the 19th Annual Effie Awards Show at the New York Hilton. The award recognizes the effectiveness of television advertising called " listen We're tdking ing and Helping" the agency created for Sierra Pacific Power Co. ln add ition. the firm's work for Sierra Pacific received top honors from the communtcattons Public Utility Communicators Associa tion, placing second in the rankings of the United Slates and Canada's " Top into the future Ten Communicators. " " Watch Your Waste," a water con servation campaign, and " Listening and Helping," a customer service campaign, won individual honors in the associa tion's competi tion. \ Accounting/Consulting Firms Merge The 11th-ranked national accounting " and consulting firm of McGladrey & CENTEL Co. has recently completed the acquisi tion of the Las Vegas office of Grant Where people connect. Thornton. Two Grant Thornton pan ners ....ill join McGladrey & Co. in Las Vegas . By pure coincidence, both Grant and \087 , ...... _ ._ _ 'It .... ~lcGladrey have been located right TH E NEVADA BUSINESS JOURNALJOctobet 1967 41 across the hall from each other on the to be right across the hall from our com vest any mo re resources in the las Vegas ninth floo r of the Valley Bank Plaza petition.With the acquisition. we won' t office. " It just wasn't our market," says since January, 1987. have to take an y additional space; we'll Rich Delaney, regional managing pan. "You could say we decided to li....e to just move the door signs!" net of Grant Thornton. gether first," Quips Phil Pechman, man Because Grant Thornton's national The two local offices of ~ t cGl adrey aging partner of the las Vegas office of mar keting philosophy was significantly and Grant have a similar client ~ l cGl adrey. " When we moved last different than the one held by its las philosophy-a learn ap proach 10 client January, we weren't so sure we wanted Vegas office, Grant decided nOI 10 in service-sand both offices have focused on serving the entrepreneurial or small business client. "Our clients will receive the most ben efit from the combination of the offices. They will continue to be served as they are now, with the same staff on their ac renders counts, but they will now benefit from McGladrey's management consulting INN expertise in strategic planning, telecom munications and human resources here in l as Vegas, " says Cliff Beadle from Hospitality. And all the rest! Grant Thornton. •Restaurant· Lounge· Pool s The new' office of ~1cGl adrey & Co. CORPORATE, GOVERNMENT AND is 42 professionals strong, maki ng it one of the largest accounting and consulting GROUP RATES AVAILABLE finns in l as Vegas. BANQUET & MEETING FACILITIES FOR GROUPS UP TO 400 FOR RESERVATIONS ------ Efforts TO Lure 702·~ OR 1-800-547.()106TOLL FREE Japanese Business 55 E. NUGGET AV E., SPARKS, NV • 89431 ~ & E. McCARRAN) Continue As chairman of the Nevada Commis sion on Economic Development, Lt. Gov. Bob ~t ill er has introduced a ven ture capital project designed to bring 265 Great Places for Business major Eastern companies to Nevada. An important phase of this project was in California & Nevada the recently completed three-country in vestment mission to Asia. with stops in Wherever you travel for Osaka, Japan; Tiapei, Taiwan and business,you'll findthe Seoul, Korea. friendly Best Western sign, Miller says the invesrment team's In California and Nevada, meetings in Osaka were " very promis anywhere in theWest, or ing." Two companies in particular-a metals manufacturer and an electronics around the world, Best company-are seriously considering a Westem isyour best value. move to Nevada. Your comfortable room will "Our international program advisory always be ready and wait committee has suggested greater auen ing nght on schedule. With tion to Japanese ban ks because of the a smooth check-in anda key role they play in the investment deci good night's sleep ahead. sions of Japanese companies," says ~l ill er . " In Osaka. our learn had very Call toll-free profitable meetings with the Sanwa and Sumitomc banks, two of Japan 's 1-800-528-1234 largest, based in Osaka." for reservations and Miller's chief assistant, Larry Henry, ask about our explains the importance of these Corporate Rate Program. meetings by citing some posit ive figures. Nevada has already welcomed nine Japan ese com panies to the state (five in Reno and four in las Vegas), not in eluding three large Japanese-owned 42 THE NEVADA BUSINESS JOURNAUOClober 1987 hotels in Las Vegas. These companies Hughes Properties subsidiary ofSumma If the 842-acre option is exercised, the accounted for the creation of 326 non Corp. to purchase 1,050 acres of the population would be about lO, THE NEVADA BUSINESS JOURNALJOctober 1987 43 The Nevada system currently has 48 The percent of its assets in stock, 46 percent in fixed-income bonds and commercial Sliver Dome mortgages. and the balance in real estate (CQnlmutdjrom putt 61 and cash. The report reviewed and adop ted by tery Impact anymore." he says. " The the retirement board was prepared by its impact has leveled off; the novelty has investment consultant, Paul Tr ou p of kind of leveled off. We have more to of Atlanta, Ga. fer and we ....ill get the business. The According to the Census Bureau, the numbers bear that out. rising stock market has been a boon to Higgins says the las Vegas area's rev state and local governm ent retiremen t enue gro....t h reflects intense casino ex programs throughout the country. pansion in the Laughlin area on the Col A census study shows earnings on in orado River. He adds the southern Ne vestments made up 55.5 percent of the vada figures also show the strength of money Flowing into such systems last convention activity, professional fights year. such as the Leonerd-Hagler fight , and various promotions. State Pension Fund Proposal Would In Reno. he says the gro....'th is"mod Sees Healthy Growth erate but heal thy" and ref lects a contin Cut State uing problem in promoting " a mature A report to the Public Employees Insurance payments market. We have to come up "1mnew Board shows its pension fund for for The Nevada Ind ustrial Relations De programs, new attractions." mer government work ers grew 13 .5 per partment has ou tlined a proposed for Higgins says those efforts already cent to $2.3 billion in the last fiscal year . mula for cutting medical payments sub have started ....ith major downtown At least half of the $275 million in stantially below the current amounts for Reno resort renovations, " but it's a long crease in the fund was due to invest care of patients covered by the State In pr ClC5S and it' s nOI going to happen ments in the stock market, according to du strial Insurance System. The system is overnight." Laura Wallace, the retirement system's suppo n ed by premiums paid by Nevada In the Las Vegas area, clubs grossed investment officer. em ployers and through investments . $2.57 billion of the total or nearly 70 She adds that PERS paid ou t $85 mil Industrial Relations Director Jim percent of aU the ....innings for a strong lion to retir ees in the most recent fiscal Barnes says the formula would be 11.9percent gain in ftseall987 over fis year, $10 million over the preceding similar to that used for paying doctors cal 1986. In the Reno area, the take was year, with an average monthly benefit of for care of ind igents under the Medicare $680. 1 million for a gain of 5.3 percent about $750. Employee contribut ions to program plus an additional 15 percent. over th e prior year. taled about $140 million . Rick Pugh of the Nevada State Medi cal Association says there has been some opposition to the formula within the La~ers association because the provider pay At Title,We GoTo GreatLengths ments would be too low. He adds some .To ProtectOurPolicyholders. doctors feel the current payments for certain surgeries for Slls-covered pa tients already are too low. Barnes also has requested an at torney general 's opinion on whether different payments can be made for the same med ical procedures. He says the Indus trial Relation s Department has backed the idea of the same payment while SUS has advocated the idea of differing payments depe nding on the level of medical training. " Our goal is to cut the costs as much as we reasonably can." he says. The SUS rates came und er fire during the 1987 Legislature with disclosures that payments for some medication to Every title insura nce policy we issue is backed by the full financial strength ofour people gettin g SUS benefits were double company.By underwri tingand fiscalpolicies that have @ :}itl metthe""oltime. Andby.""mofdedi 44 THE. NEVAD ABUSINESS JOURNAlJOc1ober 1987 Two employees. Two points of view. One healthcare plan. Not everyone looks for the same things in a 3. COST CONTROL FEATURES, such as prior heatthcare plan . Affordability is a top priority for authorization and review for all hospitalizations some, while others look for comprehensive and surgeries. are included to minimize high ben efits. cost s. That's why Sie rra Health and Life Insurance Gemini also featu res employee cost-sha ring to Company, Inc. developed GEMIN I, "the dual reduce unnecessary utilization and plan expense. choice health care plan ," 4. PREM IUM RATE GUARANTEES include a one Here's how it works ... year rate guarantee with renewal rate increases 1. EMPLOYEES CHOOSE THEIR OWN LEVEL not to exceed the Consumer Price Index. OF HEALTH BENEFITS. If they use Plan Pro A DEDICATED LOCAL STAFF of experienced viders, they will have lower out-of-pocket costs and S. no cla im forms . professionals is available for sales. claims. and member services. If they receive care from Non-Plan Providers, Whether you're looking for the low-cost benefits they will get standard indemnity benefits with calendar deduetibles and co-insurance. of a preferred care plan or the freedom of a standard indemnity system, you'll agree on 2. OUR LOCAL PROVIDER NETWORK is GEMI NI. It's the only hea/theare plan your organized and managed by Sierra Health and Life company will ever need, Insu rance Com pany, Inc. - specialists in man aged healthcare systems. =- = • ·~ft ...ft.1I ~Iiiiiiiii I Y III 'II Call 646·8350 (las Vegas) The Dual Choice Hea tthcare Plan Call 784·8230 (Renal ~------=.~. F...... SlMnI HNnh _ Lil t 1....._ Co.. Inc. or call your independent insurance _ 10 EmpIoyM Grou~ 01 J CIt_ br Oker for more informa tion . • Free Listings. JANU Statewide Office & Editorial Concept: The Office G Uide w ill be rTlUch m o r e then ,ust e d irecto ry. It vvi ll be e complete ec ncc oer package ce-e e w ill p r o rnct.e t he e n t ire s t;a t e o f N e vecre as e ooemee e r eloca t ion d es t ,natIOn. Feature a r t ic les W ill hig hlig h t the positive a s p ect S of our eeeee'e ooee-e ee e r"lV'I"'O"""'enl:. New ccoee-cce.co a c t iv o toes o f office buIldings a'"ld ,r'ldu s t r'l!!Il offic e p erks througF"'lOut the state W ill b e d iscu s sed Includ e d erec W ill b e c-cmee of 50""'e of our outstend'ng office corr-csexea e nd tl"le,r'" d e v e loper's Who Will Use The Guide? LeaSIng age nts a nd brok er-s. working W ith prospect iv e ce-eoce. 'NI l' utilize t he G u .de t o c ote n «ieor-rr-ecrco t o r ecmcece the o f f ic e move C o rn p anles seeking .n f o r m a tlo n on o p e"'ng. expendin g 01'" r-e loca ting. Building Li8ting: L ,s c,n g s W ill .nclu d e a ll o f t h e In f o r ma t io n s hown o n the form on the f a Cin g p a g e O f f ice m a r k e t m aps W ith bUilding loca tio n s k eyed t o ececrnc e r-e eres W ill b e In c lu d e d . Circulation, 15,000: In edd lt lon to our r egular m ail In g lis t s, oornee W ill b e t arget e d to c orporate ree l estate o e cearcn rne v er-e w ,th c omp a n ie s mos t lik.e- 4&THE NEVADA BUSINESS JOUANAUOCtober 1987 • Free Listings. Y 1988 Indust r ial Space Guide ------,j BUILDING INFORMATION FORM , [For Your FREE Listing] , If you have a multi-tenant commercial building or Industrial park please 111I out t he lorm and , send It to us lor your FAEE listing in the Ollice & Ind ustrial Spac e Guide. • II You HIVe Mora Than One Building Or Park Submit ASapa rate Form For EaCh Type of Building C Ollice O Ofl ice-Condo C Ollice-Aetail Shops C lndustrial C Warehouse C Reta il Shop s C Oflice Mixed Use (describe) _ Building or property name' _ Str eet Address. _ City Zip Code _ Contact PersonL _ Leasing COmpany' _ Phone, _ Addres s _ City _ Sta te _ Zip _ Year O Under Cons truction Numbe r Built Year 01 Complet ion, _ 01 Storie s__ Total SQ . Ft .. _ teaseoe SQ. Ft. Currenrly Availao le Rat e per Sq. Ft. per Year: Rangesfrom S tc s _ This information supplied by' Date _ Phone _ Buildin g Owned by':-:::-:-""'::::c;------ (For Verificat ion Pur poses Only) o Plene send me an Advert ising Media Kit. Ret urn thll form to : Nevada Busines l Jou rnal, 1641 Sunset, Suit e B·117. Las Vegas , NV 89119 or Phone 361·1085 ACTIVITIES FEATURES & SERVICES UTILlTI ES 0 0 • • •u .s • ~ E • 's ci Please Check •, • " "E •0 'a 5 0 ,; • E E •0 ;; • ,; s: • •o · -e• •o ~ • ;;;• • •e ~ e s ;; &0 ;; , c ~ e 'a c The .,• •0 o •~ "'• 0 ;; ;; ~ • • · .2 ~ • • . ;; ;; E • e "• ~• 5 ~• Q· • • • o• • 3 "' a~ ,; , !5 ~• •~ "' ~ ,; 3 .. • ~• ~ 0 • ~ Ji ~ 2 ,• "'c ~ • 1'. 3 "' • Appropriate ~ a 0; ~ • s • ~ 3 • , • ~• •e i e 3 u a • , > , • " ~ " .e• ~ 0 c <; , ~ = • ~ •0 •;; _0 -0 e s u •> • " "' - ~ 0 • a ;; 0 • 0 - 0 " , • • ~ ~ ~ ~• • • ~ " • ~ u,• . • z Boxes 5 3 J U t •w " U U" 6 3 8 5 0000000"' 0000000000'" "' "' '" 000000000"' ~------~------_. THE NEVADA BUSINESS JOURNALJOCtober 1987 47 The Carson Valley: Problems In Paradise The small communities that dot the picturesque Carson Valley offer a warm, rural atmosphere. But they also offer a rural infrastructure-a big deterrent to new business...... ~ By Steve Zuelke ... ighway construction dust min Valley has prospered." says Tom Wix ground water are ideal for agriculture. gles with smoke from a nearby on, general manager of the Record These Individuals dominated the region forest fire. A Douglas County Courier, Douglas County's weekly for decades. and their influence is still Hsheriff's deputy stands on the newspaper. " Despite the fact that Xebec felt. The long-time landholders are slow come r of highways 396and 88directing went 'do....nhill' from the day they open ly losing their grip, however. and the tra ffic unco ntrolled by a signal. Build ed their doors almost five years ago. the land is being sold by their descendents. ings a century old. tottering and ready to population has continued to grow at al "Agriculture will not be the primary blow over in a stiff wind. stand next to most six percent. force in that valley in the future." says modern office complexes. Condo mini " Carson Valley is on its way to be Michael Rainey. business-industry liai ums sprout in the middle of alfalfa coming larger than Carson City- some son officer for Truckee Meadows Com fields. time out around IWl or 1998 somebody munity College and former "ice presi The unicorporated townships of Min dent of the XebecCorp.• which had es den and Gardnerville are the hub of the tablished a major facility in the region bustling Carson Valley. a picturesque The addition (see related stan '). 4(X).square-mile valley south of Carson " The cost of agricultural land is so City. The valley is home to the oldest of infrastructure high as to make the purchase and fann settlement in the state, the Mormon Sta ing of that type of land infeasible." he tion located in Genoa. four miles north is expensive to adds. " Most of the farmers ou t there west of Minden. Several communities companies looking o....n their land outright. The children are located ....ithin the valley which is are not so tied to the land as their par arguably the most attract ive in the state . for a location. ents were, so when the folks pass on, These communities have remained they sell the land . The area attracts a lot rather small and isolated- until recent of retired folks and families because of years, .....hen the explosive gro ....th will come into thisva1Jey and tip thescales the attractiveness and pristineness of the Nevada is experiencing has finally forever," he adds. "At that moment. agricultural lands. so the valley is devel caught up to the Carson Valley. In Douglas County will become the third oping into a 'bedroo m community' for many respects this growth iscatching the largest county population- ....ise behind themore developed areassuch as Carson residents and governing bodies off Clark County and W"""" County," City and the south shore at Tahoe." guard and unprepared for the infra The sheer number of real estate signs There is little full-blo wn industrial de structural problems that come ....-ith a within the Minden and Gardnerville velopment ....ithin the valley. Bently Ne major influx of population . townships attests to the fact that the area vada, Nevada's largest non-service in "The county anticipates that .....e'Il expects to continue its expansion. Signs dustry employer. relocated from Berk double our population over the next sev for commercially developable property, eley. Calif., in 1961 to Minden after eral years. and based on the activity seen residential property and build-to-suit founder Don Bently decided he needed a in this office at least. they are probably abound along the paved and unpav ed change. correct." says Patty Clark. owne r of roa ds that cross the valley. " There was an s.coo-scoere-rcor Clark Pro perties lnc., the No. I-ranked For many years. the valley was a rest hangar here, and the company which Century 21 office in the state. ing point on the long overland trip to had leased it defaulted on the lease. " My feeling is that in the face of no California. Ranchers and farmers soon Douglas County gave Don an attractive real industrial development , and in some set up operations within the valley; the lease on the property," says Roger respects just the opposite, the Carson tall, spring-fed grasses and abundant Har ker. president of Bently Nevada. 48 THE NEVADA BUSINESS JOU RNAUOCtober 1987 " Coupled with the vel)' good tax and science park 10 be located out near The community is spread out; there is economic benefits w'ithin the stare of Douglas County Airport. At this time, no concentration of population which Nevada, and me natural beauty and Bently is the sole occupant of me plan makes the development of the infra quality of life in me area, he decided ned project largely due to the inade structure difficult. " that this was great." quacy of the area's infrastructure. County Commission Chairman Jerry Xebec Corp., manufacturer of in " Most businesses looking to relocate Bing explains why this is a problem. regrated microcircui t boards, located to here want 10 have their doors open " We have had a significant number of the Carson Valley in 1981. " We wanted ....ithin a year," says Har ker. " At this individuals who come into me ar ea in to get out of California and go to a poin t in time, that is simply not tending to subdivide and develop using quieter place where we could grew and feasible." parceling to circumvent the infrastruc develop the ecosystem like we wanted Many of the businesses that would rure requirements," he says. " They try to," says James Toreson, chairm an of like 10 move facilities there are put off to split and respbt parcels of property Xebec. " We liked the area. It had a lot by the lack of infrastructure. "We're wi thout the proper coincidental devel of appeal- mo re so than in Reno, say. still a small community, or rather, a opment, and what you end up with is a Reno is more commercialized and the series of small communities spread all series of subdivisions with wells, septic quality of life is nOI as good as in the over the valley," says Bill Tomerlin of systems and dirt roads witho ut the bene Gardnerville area ." Xebec closed the Tomerlin Enterprises. " That has posi fit of fife protection, water service, sew Gardnerville facility in 1987. tive and negative effects. The beauty of er service and paved roads." Shortly after the Xebec relocation, the area is that there is a lot of open "The County Commission has receiv Bently Nevada unveiled plans for a space here, but that causes a problem. ed a lot of criticism for stopping parcel- The Carson Valley' s explosive growth is catc hi ng res i· fo r th e infrastructu ral problems that come wit h a major dents and governing bod ies of f-guard and un prepared influx of popul ation. THE NEVADA BUSINESS JOURNAUOctober 1987 49 ______", DDINGBUSINESS IN------...... 1 ing and reparcehng," says Tomerlin. " You have to weigh the four-lane "The critics haven't taken into full ac highway in relation to population and count the impact of the parcel codes. commercial growth here," says Wixon. Take for instance the policyof paving to "Carson City won't get any closer after the nearest pavement. Out in the rural its completion, but it will be closer psy. areas, it seems ridiculous to go do....-n a chologically. When the road was tWI> dirt road 10 a paved cul-de-sac ....-ith four lane, you could get stuck behind a slow homes on it." moving caravan of campers or fann "The commission is conservativewith equipment, and in the winter, the road their gro ....th policies," says Clark. was very difficult to travel . When the "They are idealistic to the extent that roadwork is completed, there will be a they want each potential develope- to perception that Carson City is only a 1.5 provide for every possib le contingency. minute commute every day." Sadly. this requires a financial commit " We've had several employees killed ment so great that it thwarts develop on that highway," says Harker. "Com ment before it becomes a reality." pletion will make commuting easier and The additio n of infrastructure is ex enhance our recruiting. Due to the tech pensive to companies looking for a loca nieal nature of our business, we've had tion. Bently Nevada is flnding out as it to do a significant amount of recruiting slowly continues development of the from out of the area." science park. "There is a lot of infra Completion of the highway will in structure wcrk left to be done." says crease problems for an already ailing " We liked the area. Harker. " At this point, .....e've already do wntown economy, according to Inde- It had a lot ofappeal invested some S2 million in peripherals pendent Planning Consultant Ray more so than in R eno, say. such as roads and sewers." Smith. "Gardnerville is on both sides of R eno is more commercialized One major infrastructure improve a traffic artery," he says. "U.S. 39.5 and the quality oj life ment being made is the widening ofU.S. through Gardnerville is a funnel. not as good as in the 39.5 from a two-jane " blood-alley" to a There's nothing to do but go through it; is modem four-lane thoroughfare. there's very little off-street parking. The Gardnerville area. " people who drive through don't spend a James 'rceeeon chairman, Xebec Corp. dime. What good arebillions ofcarsjust driving by?" Increased traffic flow will only com older buildings like the Minden Inn, pound the problem, according to Smith. which is now vacant due to enacted fire " We need desperately to make the codes, they could also set up a turn-of downtown area accessible 10 shoppers," the-century community that would en he says. " We need to bypass the town hance the attraction of the area." with the highway and sharpen up the Individuals like Leonard Ludel, downtown image to attract women founder of Ludel's Jewelry and the shoppers- women do all the buying." American School of Diamond Cutting, In Minden, the Hanely Project is feel that this may not be quite enough. designed to do just that. " We have plan " We have to develop a farsighted ned three office buildings, a pedestrian plan," says Ludel. " It's time that we shopping mall, an apartment complex, speak about some of the long-term ... professional offices and a condominium economic forces at play that encourage ; complex there," says Tomerlin. "The industrial growth. This valley cannot ;;: architecture will reflect all different na survive on simply a tourism-based or i tionalities, such as the French Quarter, residential economy. I'd like to seelight, :;;; the Spanish,Dutch, Belgian, or English clean manufacturing." '" areas. Each section will specializein that " The area around the Douglas ;;; nationality; say pastries from the Dutch M inden Airport is hoped to be develop "The county area and clothes from the French, just as ed as an industrial area. There is a block an example. We are trying to put to of individuals here for whom that is a anticipates that we'll gether a little international shopping goal," says Wixon. double our pop ulation complex anchored by a hotel-casino." " By next summer, we're hoping to over the next several " The Hanley Project is being devel have several light industries out there," years, and based on the oped like Solvang (California)," says says Tomerlin. "The problem is that we activity seen in this Rainey." They're looking to make it a have zonedlands out there for industrial office at least, they are destination tourist attraction. People development, but when people come out come to the area. visitStateline, Virginia to 'oak at the area, we really have probably correct. .. City, and if it comes to complete fru nothing to show them but the land. The Patty Cla~ CM'ner C1ar1l. Properties. Inc. ition, the Village. If they continued in COUnt}" requires developers to go first this vein and renovated some of the class. putting in curbs, gutters, land- 50 THE NEVADA BUSINESS JOURNALJOctober 1987 scapes and open areas. Even though this all the way down the line. At the same amounts to a considerable expense, we time, you're creating the secondary jobs feel that in the long run it will be worth to service them. it. We really want to do this well." " Now, maybe if the county commis " Douglas County is in its teenage sion adopts a clear-cut policy decision years, growing into young aduhhood. that, 'hey, we're not going to tum away We're beginning to mature, and in order industry, but we're not going to solicit to do so, we need to continue working or beg for it,' but they do solicitretirees, on the infrastructure-like developing a then we end up with a nice community community-....ide water and sewer sys with nice homes, clean air, a wonderful tem," says Bing. "The ranching indus environment; we get the best of both try is slowly giving way to urbanization, worlds," he says. but we have to make sure that the Clark is concerned that a retirement growth is good, quality growth that :::l community would be non-conducive to doesn't cost the current residents." ~ economic development. "The problem " The county is on the right track in :;;: is that you can become top-heavy," she clustering industry around the airport," ! says. "You get a large number of resi says Clark. " This area has an agricul ~ dents that are going to Carson City and tural heritage, and there are many na § Reno to spend their capital, so they tural spin-offs to the agricultural i>: aren't contributing to the local business, such as the 'Golden Fleece'; a " There are many economy, but they do require the infra company that makes clothing and acces structure and use the services." sories from sheepskin. We should also businesses on the fence. The infrastructure and services are be gearing for light manufacturing and Many retailers aren't mostly paid for through property tax. assembly and warehousing." sure whether they should As Rainey explains, this can be a risky "The citizens of this community build at the south end business. " It takes a SI50,(XX) house to wouldn't stand for large jetlinerscoming of Carson City or wait pay its own way tax-wise," he says. " A in and out of the airport," says Smith. house that sells for $60,(XX) or S70,(XX) two or three years and doesn't really pay for the required infra- see if the population base warrants mo ving here." Tom Wixon , general manager, The Record·Courier " Light manufacturing would please the pro-gro.....thers in this valley. The pro I gro....thers keep talking light industrial, blue-chip manufacturing, but there are more communities looking for blue-chip industries than blue-chips looking for homes. This valley can't necessarily com- ~ pete with areas like Reno that are more ! geared toward industrial development. " ~ " The problem is that if you don't :!;, grow, you die," says Bing. " The U.S. 395 completion will assure that growth, :='" especially the population growth. Under i>: the current tax structures, we need to ) . " The beauty of the grow more in commercial areas." area is that there is a lot Smith suggests an alternative to in "We need desperately dustrial growth would be to attract re ofopen space here; but that tirees and model the valley after Palm to make the downtown area causes a problem. The community Springs, Calif. "A retiree is a basic accessible to shoppers. We is spread out; there is no employee in a sense," he says. "They need to bypass the town with concentration of population have a steady source of income, require the highway and sharpen up which makes the development less of the support infrastructure like the downtown image to attract schools, don't contribute to crime rates, of the infrastructure don't build the 'smokestacks'...if you women shoppers- women do difficult. " have 100retireesmove into the area, it is all the buying. " Bill Tomerlin. Tomerlin Enterprises like creating a 100 person payroll with Ray Smith , independent planning consultant out the problems. Essentially, it's a plus THE NEVADA BUSINESS JOURNAUOctober 1987 51 DOING BUSINESS IN ...""'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''....f structure improvements." aren't sure whether they should build at Maier economic development is still a A check of listings in the area in the south end of Carson City or wait long way off for the Carson Valley. dicates there are a substantial number of two or three years and see if the popula There are few good paved roads, inade properties for sale, many single-family tion base warrants moving here." quate sewage treatment facilities for ma dwellings in the S60,lXXJ to 570,(0) price The Carson Valley hopes to use the jor developments. no county-wide .....ater range. Using Rainey' s assessment, only aesthetic value of the valley as a cor service. and an inadequate power supply half of the required improvements are nerstone of its grc ....-th. "This is a for major industry. being funded by property taxes. family-oriented community," says " We were told it would take IwO Bing agrees. " The state Legislature Clark. "There are lots of sports ac years to get adequate power for our needs to look at the tax structures devel tivi ties here. softball and soccer leagues, business," says Toreson. " A business is oped during the 1981 sessions." rodeo and basketball. People tum out in very limited when there is insufficient "It took a long time to get the idea large numbers for these events. The power to supply the demand." that we need industry here," says schools are also excellent; they're very Such infrastrucrural problems are Tomerlin. "We like the residentiality of quality oriented. The Gardnerville Ele partly due to the agricultural aspects of the community and the agricultural as mentary was recently recognized as being the valley. That problem is changing. peers. That's what drew many or us here one ofthe bestin the nation. and received however. as the inevitability of growth to begin with. However. we need more recognition from the president." becomes more apparent. More and jobs to provide a larger tax base. We " I think Douglas County is an excel more large land o .....ners are selling farm need to get the population of this valley lent location for a business," says Bing. lands to developers. over 3D,CO) so that the merchants have " There seems to be a trend in the cor " At $5.(0) an acre, it is not econc m enough shoppers to survive here. do porate .....orld of concentrating on the ically effective to run cattle on the well, then expand." quality of life for an employee over land." says Smith. " But if you develop "There are many businesses on the other considerations, and Douglas the land into four nice homes, then the fence." says Wixon. " ~ I any retailers County has that quality oflife to offer." profit can be made." Paradise vice president of Xebec. " Xebec .....as supplying the area with 500 jobs at one Lost point. but .....hen IBM pulled out, Xebec felt the contraction." When high-tech Xebec openedshop in rural Gardnerville, "We had no choice but to put the most folks were ecstatic. The company trained some 2,000 facility into hibernation," says Toreson. people and created 500jobs. It was too good to last. " The facilities were not quite adequate Steve Zuelke enough and the full range of support F======By ======facilities we needed weren't quite in estled in a depression in the $800,000 and with infrastru cture im place. We'd have had a better chance if Carson Valley is Xebec's Oard provements. we invested over $2.5 mil one or two others like Xebec had moved nerville plant. The once bus lion into the property. into the valley." Ntling par king lot is now empty "The county requ ired us to put in a Tom Wixon. general manager of the and blan k windows star e over acres of road, and a water tank with enough ca Record-Courier. isn' t so sure. " Xebec sagebrush and desolation . Squirrels pacity to supply 40 acres in the event of opened a peripheral operatio n at the reign dominant on the terrain, scurrying a fire," he notes. "We had to install a precise moment that the floo r feU out about much the way employees did a well, and because there was no sewage from under the computer market. A year ago. hoo kup. we had to put in a septic tank." company like Bently Nevada is the " We took a big risk to come to this Xebec's Gardnerville facility was ' Hughes Tool and Die Company' of the area," says James Tcreson , chairman of home to a ro botic assembly plant that area. They had an essential product that Xebec Corp. Xebec, a public corpora provided IBM with a controller for its no one else was able to produce. Xebec tion traded over the counter (1986 rev line of personal computers. In late 1986. wasproducing high quality products, but enues reported a 53.524,OCO loss in net IB~' I indicated to Xebec that it .....ould with the advances made in the computer income) , located a 4O.{XX}.square-foot stop purchasing that co ntroller, sending industry, they were highly imitable." automated controller manufacturing tremors through the Gardnerville plant, Xebec dosed the doo rs of the Gard plant in the Carson Valley just outside which was dedicated to prod ucing the nerville facility after IBM dropped its of Gardnerville in 1981, both as an at component. controller and the company found itself tempt to ensure product development " Fifty to 70 percent of the capacity of with too much production capacity. secrecy as well as to leave the crowds of the Gardnerville facility .....as utilized in "Our plans call for the reopening of the Silicon Valley. the production of the controller," says the Gardnerville facility. We have a con " We invested S4OO,OCO in property Toreson. solidation plan to develop a corporate and another S8OO.0c0 in the initial build " The rise and fall of Xebec has complex in the area." says Toreson . ing phase." says Toreson. "An expan sho.....n that high technology is a risky "We just: grew too fast in the area. and sion of the facility cost us another business." says Michael Rainey. former we couldn't de\"elop the facilities to sup- 52 THE NEVA.DABUSINESS JOU RNAlJOctobef 1987 DOING BUSIN ESS IN ...... " We have (0 be careful to watch the that land- he can' t make a profit. The Power Plant, they are working on new density levels," says Clark. "A decrease to-acre chunks are then built on , sewer facilities and there is apparently in density eliminates profit potential. without the benefit of paved roads, more than enough water for the future. and if a developer says he needs four schools, sewers... . This is no way to im There is a quality education for the dwellings per acre to make a profit and prove the infrastructure." children, the kindergarten through 12th he's allowed three plus extensive infra " There are too many miles between system is a pretty responsible and pro structure improvements, you are going these little communities," says Tomer gressive district . The airport adds to the to stop a great development before it lin. " It mak es the cost of infrastructure nash an sizzle of the area. Executives gets started. improvement very high, but the way like to go from a large metropolitan air " Instead of the high quality, high we've been growing, we'll be able to port to the front door of an outlying density growth that would benefit this ma ke those impro vements." operation in just an hour." comm unity, you would end up with the " It's a leap-frog effect," says Bing. Man y problems will have to be ad property parceled into lower density, " This parcel is developed here, this one dressed as the valley gro ws. The area is lower quality development," he says. there. prett y soo n they start tying serviced by one medical clinic, which " So. say you have a developer who together and becoming systems." will eventually become overtaxed as the wants to tum 500 acres into a small " Growth is a natural progression," population continues to grow. Bently community, complete with areas set says Rainey." There is a lot to be op Nevada installed a recreatio nal facility aside for schools. parks. shopping-the timistic about in the Carson Valley. for its employees, but other than that , whole works. He proposes the idea and Roads have always been a pro blem and schoolgrounds and one community park claims he needs a cenain density to show may be mo re so when the four lanes are offer the only recreational facilities in a profit . If that density is decreased, the funneled throu gh downtown. However, the valley. owner of the land ends up selling the the quality and availability of housing is " We are lucky that Tahoe is right property in to-acre chunks, because the good ,Sierra Pacific Power seems com there," Wixon says. " You can be in developer no longer wants to purchase mitted to a build-out at the Buckeye Tahoe in 25 minu tes to catch top-notch port the rest of our corporate structure had no current need for the production " We invested over $6 million in training without other companies to assist in in capacity. We fully intend to utilize that alone , and we found that the work force frastructure development." facility." there was pretty good after they were Individuals like Ray Smith, an inde The 1986 Xebec Annual Report indi trained. Even after we closed the Gard pendent planning consultant, aren't cates that the facility is up for sale, but nerville plant to eliminate temporarily positive that Xebec would have been that Xebec intends to lease the plant unneed ed manufacturing space, we still able to prosper, even with additional from the new owner, if one can be employed a number of individuals from support. "Xebec imported money and found. that facility here. We did trai n those labor, but they never developed a base " It is nor good for a community to 2,OCQ people and I think the commu nity within the community. Bently started have a big, expensive building with va is better off for it." small and grew with the town," he says. cant windows," notes Wixon. " I don't think we'll see another pro Yet, Xebec did become quite involved " 1 think one of the major pro blems ject come in like Xebec," says Tomerlin. with the community during its tenure that Xebec had was that they were " The idea was, and still is, fant astic, but there. located poorly," says Bill Tomerlin of the loca tion was all wrong. I think that " Xebec was quite lavish in their com Tomerlin Enterpri ses. " They' re out if another development of this nature mitment to the community," says Leon there in the middl e of the desert ope rat approaches the county commission, they ard Ludel, founder of the American ing off a well and a septic system. Very would be approved for a facility near the School of Diamond Cutting." They con few other companies want to locate into airport, but not way out here." tributed heavily to projects such as the that type of terrain. " Whe ther or not Xebec ever reopens Minden-Gardnerville swimming pool." There is a sense of despair and loss the Gardnerville facility remains to be Xebec also donated heavily to the Un within the community over the Xebec seen. Long-term reactions to the closing iversity of Nevada-Reno to aid in the project. " It would be nice if we could of the facility also remain to be seen, for development of an engineering school, get a com pany in to utilize the empty no major projects of that type are in the as well as donating several Apple com building," says Jerry Bing, Douglas planni ng or execution stages, but Tore puters to Douglas County High School. County Commission chairman. " It son feels that there shouldn't be any " The whole situation is quite tragic," seems like such a waste to be sitting problem. says Ludel. " We ant icipated that they there doing nothing." " The main thing," Toreson says, " is were going to continue on in the facility " Xebec came into town, waved mil when a large company like Xebec comes and in the community. " lions of dollars arou nd, and tried to buy into an area like Minden and Gardner "1 think it's important to point out into this community," says Smith. ville, there are expectat ions on both that we didn' t abandon anyone," says " This area isn' t like that; people won 't sides. 1 think we got better results than Toreson. " We had to hibernate that allow it." we anticipated, and I have to believe facility because we were committed to a " We trained some 2,(0) people at a that the community is, and will be, bet lease in this (Carson City) facility and we cost of $3,(0) each," says Toreson. ter off." 0 THE NEVADA BUSINESS JOURNAUOCtober 1987 53 ~~~ DOINC BUSINESS IN ~~.. entertainment, and some of the world's f}?J~~,9U (P A L) best skiing is at our doorstep. !!!-!!!!!""!!!!!!!!!!!!!!!!. Complete Secretarial Service !!'!!!!!!!!!!!!!!!!!!!!!!!!~. "In the long run, the Carson Valley may end up banking on its growth as a 'bedroom' community to Carson City • Corpo rate Pa ckages • Resident Agent and south shore of Lake Tahoe for fu • Word Processing and • Nota ry Public ture prosperity," he adds ." H ighway Typing (All phases) • Temporary Services! 395 will open access to the north when the additional lanes are completed and • Tape Tr anscription Employment placement on 395 brings the area 50 • Resumes • Mail Service miles closer to Los Angeles than Reno. " But Reno's location on Interstate 311 S. Roap St .. Ca rlon Cit y, ,,'V 89701 80, the rail access they enjoy, and the location of an international airport there t7021 IIS·16u_{Hou n) 8:00 . 5:00 may just keep the Carson Valley from being able to entice the large numbers of indu stries to keep the economy diverse and expanding," concludes Wixon . The Carson Valley may be better ser ved by encouraging small, expanding businesses to locate into the area to en joy the beauty of the valley. They would then be able to reap the benefits of ex pansion , the slow steady growth that most of the community leaders seem in terested in. " I feU in love with this area and de cided I wanted to spend the rest of my life here," says Lude!. " The natural floodplains will always provide the open spaces here tha t we love and enjoy," says Tomerlin. "We have a great deal to offer businesses. Ou r airpo rt is far superior to Carson's, the valley is larger than Carson City, we're closer to clubs and entertainment, not to mention the fact tha t this is the most beautiful valley in the state. ~''' ''O M' "The majority of this community is cognizant of the fact tha t we need indus I trial development, and they are now spectacular view . aston ishing prices starting to encourage it. We would love consider . .. Complete Dinner any light industry or manufacturing, but we don' t want to fill this valley with belching smo kestacks," Tomerlin adds. HA LF & HALF " If you own the land and want to develop it, and are willing to provide the lobster Tail and $1195 required infrastruct ures, Douglas Coun ty will welcome you with open arms ," New Yo rk Steak says Bing. plus many other attractively priced entrees, " We don't foresee any downturn in all served in a gourmet setting property values," says Clark. " This is one of the most attractive valleys in the Stale, and will retain its quality for years R Of to come. There are problems that need WI N~6vETEO to be addressed here, though, problems THE FOUR wi th growth-s-nothing that can't be TRIPLE ~ AWARD solved, though. Other commuities have faced many similar problems. I think a OlAMON little research as to how other commun 386-2512 ities have solved. their problems would Free- an d-easy parking for 1,400 cars go a long way." 0 PHOTOSCOlInS'f OF THE RKURD-COURlER 54 THE NEVADA BUSINESS JOURNAUOctober 1987 , • YOUR COLOR SEPARATIONS ARE AT SOUTHWEST COLOR GRAPHICS 4420 ARVILLE STREET, SUITE 1 LAS VEGAS, NEVADA 89103 • (702) 362-7660 - - - i"d!""ii-j,;:-<:" ;.. - -.0,,..-- .-- Make the Move to Corporate Pointe Reno's Most Prestigious Office Park If you're looking for a prestig ious new office with beautiful, fresh surroundings, now's the perfect time to make your move to Corporate Pointe. Blue Cross and Blue Shield of Nevada is proud to announce the opening of Corporate Pointe, set in the heart of Reno's "City Center. " .~Lv. v. REAL PROPERTIES, LTD. Realtors ~ I ; Exclusive Leasing and Management Agents (702) 323-3001